Popular crypto analyst Kripto Mevsimi highlights how the introduction of spot Bitcoin ETFs is influencing BTCâs transformation into a more mature asset.Â
Mevsimi noted that there has been a shift in Bitcoin exposure since the launch of spot Bitcoin ETFs. For context, spot Bitcoin ETFs launched in the U.S. in January, providing institutional investors exposure to the worldâs largest cryptocurrency.
Spot ETFs Influence Bitcoin TransitionÂ
According to the expert, the ETFs are influencing Bitcoinâs maturity by facilitating the transition of long-term Bitcoin holders to new owners of spot ETFs.Â
The expert emphasized that most new owners embracing spot Bitcoin ETFs are not new market entrants. They suggested that the new owners could be moving from Grayscaleâs Bitcoin Trust (GBTC) due to the fundâs high fees. GBTC has witnessed billions in outflows since the ETFs went live.Â
Bitcoin ETF Investors Become Long-Term BTC HoldersÂ
Notably, Mevsimi stated that the owners of spot Bitcoin ETFs are gradually becoming long-term Bitcoin holders, saying that they have âcrossed the 155-day threshold.âÂ
Per Mevsimi, surpassing the six-month threshold is psychologically significant, regardless of whether investorsâ price expectations were met. Interestingly, Mevsimi attached a chart from CryptoQuant showing the stats of Bitcoinâs circulating supply held by short-term and long-term holders.Â
The accompanying chart illustrates that Bitcoinâs supply held by long-term addresses has increased since 2021 compared to short-term addresses. Â
As of the time of the publication, long-term holders held around 16 million of Bitcoinâs circulating supply, while short-term holders account for around 3.7 million BTC.Â
Bitcoin Transitions to Mature AssetÂ
Reacting, Mevsimi said this trend usually causes massive volatility in Bitcoinâs price. However, he noted that the influence of spot ETFs and the growing adoption of BTC by traditional finance investors have mitigated these fluctuations.Â
Consequently, the expert emphasized that Bitcoin is leaving its youthful volatility behind and transitioning to a more mature asset. Meanwhile, Mevsimi projected that Bitcoin could be integrated into the global economy if this transition continues, potentially attracting greater institutional demand.Â
Bitcoin ETF PerformanceÂ
Since their launch, Bitcoin ETFs have collectively witnessed a total inflow of $17.94 billion, according to data from Farside Investors. The funds have had an incredible performance so far, with the last five days marked with consistent inflows.Â
Yesterday, BlackRockâs iShares Bitcoin Trust (IBIT) saw nearly $185 million in inflows, followed by Bitwiseâs Bitcoin ETF (BITB), which added around $2.1 million.Â
Conversely, ARK Invest/21Sharesâ Bitcoin ETF (ARK) and Fidelityâs Bitcoin Fund (FBTC) registered outflows of $47.4 million and $33.2 million, respectively. The remaining ETFs did not witness any flow yesterday, bringing the dayâs record to an inflow of $105.9 million.Â
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basicâs opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.