Key Notes

Key Notes:

Bitcoin ETF holds the key to a sustained market rally, as noted by Ki Young Ju.The BTC ETF market has continued to see outflows, but inflows supersede.Uncertainty in US policies regarding Bitcoin reserves still forms a headwind for the market.

The price of Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B might have slowed down in reaching a new peak, but that does not mean the bull market is over. According to a post on X, CryptoQuant CEO Ki Young Ju said the key to Bitcoin’s continued growth is the demand for BTC Exchange Traded Funds (ETFs).

Young Ju shared that the rally can run as long as more money flows into Bitcoin ETFs than is leaving. However, the market could take a bearish turn if withdrawals outpace new investments for a long time.

As Young Ju highlighted on X, while ETF inflows have decreased, they still exceed outflows. This means institutional Investors are still interested in Bitcoin despite market volatility.

Recent data from SoSoValue showed that Bitcoin ETFs recorded an outflow of $71.07 million as of February 19. This marked the second straight day of net outflows. While Fidelity Investments’ FBTC has a track record of massive inflows, the outlook has slowed down.

According to current data, Fidelity’s FBTC has seen large withdrawals totaling $48.39 million. Other Bitcoin ETF funds from asset managers, including Valkyrie’s BRRR, ARK 21Shares’ ARKB, and VanEck’s HODL, also saw notable withdrawals.

Meanwhile, BlackRock’s IBIT and seven other ETFs saw no noticeable movement. Despite these outflows, the total trading volume for Bitcoin ETFs remained strong at $2.05 billion. This suggests that while some investors withdraw, overall market participation is still high.

Despite short-term volatility, big institutions invest more in Bitcoin ETFs. Coinspeaker recently reported that Abu Dhabi’s Sovereign Wealth Fund made a major investment of $437 million in BlackRock’s IBIT.

This move proves that big financial institutions’ interest in digital investment products is growing. Also, Barclays, a British universal bank, has joined the likes of JPMorgan and Goldman Sachs with increased stakes in Bitcoin ETF.

A filing with the US Securities and Exchange Commission (SEC) revealed that the bank now holds 2.47 million shares of IBIT, valued at $131 million.

Bitcoin is now changing hands for $97,000, lower than its highest price of $109,200 recorded last month. This price drop comes amid uncertainty in President Donald Trump’s plan to create a Strategic Bitcoin Reserve in the near future.

Many investors thought the President would fast-track the Bitcoin reserve process immediately after he resumed office. However, they are unsure if it will happen soon, and this doubt has made the market unstable again.

However, Coinspeaker highlighted that the SEC has launched the Crypto Task Force led by Hester Peirce. This task force will play a major role in creating the proposed national Bitcoin reserve.

Bitcoin’s bull market is still strong, supported by big purchases from companies like Strategy and Semsler Scientific. However, its future depends on demand from ETFs.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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