The data on the blockchain shows three major waves of inflows by veteran traders in this cycle.
As ETFs net flows increased, so did the number of days that Bitcoin coins were destroyed
Maartunn, author of CryptoQuant in a recent article, explains the concept. post Bitcoin, on X is undergoing major reshuffles relating to the old tokens. spot ETFs. Spot ETFs are investment vehicles which trade on conventional platforms. They allow investors exposure to underlying assets like BTC, without the need to own them directly.
BTC Spot ETFs were launched in the US on January 20, 2024. The funds have enjoyed steady growth since then. However, there were a few times when the inflows of money spiked. The main attraction of the ETFs is that investors unfamiliar with the cryptocurrency world can invest into BTC in a form that’s convenient to them.
When a trader invests into such a vehicle, the fund buys an equivalent amount of the cryptocurrency on the client’s behalf. The ETF wallets are affected by this on-chain transaction.
Maartunn has shared a chart showing the movement of the Bitcoin spot ETF over the past 30 days. netflow Since the beginning of 2024.
The graph shows that the Bitcoin ETF spot netflow experienced a couple of phases with extremely positive values. Naturally, these values correspond to high demand for ETFs.
These large inflows of people share a common pattern. From the chart, it’s visible that the Coin Days Destroyed (CDD) Distribute the signals in conjunction with netflow spikes.
CDD (Coin Day Count) is an indicator on the chain that counts how many coin days are currently being used. “destroyed”The BTC network is a global system of transactions. One coin day represents the amount of BTC that a BTC can accumulate after being inactive on the Blockchain for a single day. If a token has remained dormant in a block for x number of days, then its counter will reset back to 0. When a token is moved, its coin days counter returns to zero.
In general, spikes of this metric are a result of activity by the diamond-hands on the network. They tend to build up a large amount of coins days through their patience. When they break their silence it causes a huge destruction in coin days.
All three of the major Bitcoin ETF waves, Summer 2024 and Fall 2024 followed by Summer 2025, were all associated with a CDD signal. This suggests that the coins had been moved from experienced hands into new demand.
Netflows of ETFs have remained at neutral levels since the last such surge, indicating that the demand for ETFs has been cooled. “ETF inflows are key,” notes Maartunn. “Without strong new demand, selling pressure from new holders could increase.”
BTC price
Bitcoin was trading at around $110 500, an increase of 2% in the last week.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
