Institutional Demand for Bitcoin Remains Strong: CryptoQuant

Bitcoin Institutional Inflows Hit 577,000 BTC Annually

Institutional demand for Bitcoin remains robust as CryptoQuant CEO Ki Young Ju reports U.S. custodial wallets seeing net inflows of 577,000 BTCโ€”valued at $53 billionโ€”over the past year.

This ongoing trend highlights Bitcoinโ€™s attractiveness to institutions, indicating potential long-term market stability despite recent price fluctuations.

The CEO of CryptoQuant, Ki Young Ju, reported strong institutional demand for Bitcoin. Inflows to custodial wallets reached 577,000 BTC over the past year. This ongoing trend signifies a substantial allocation by financial institutions.

CryptoQuant observed net inflows totaling approximately $53 billion in Bitcoin, allocated across U.S. custodial wallets. These wallets are specifically noted for their 100-1,000 BTC holdings, including spot ETFs, but they exclude exchanges and miners.

Institutional Demand Boosts Bitcoin Investor Confidence

โ€œInstitutional demand for Bitcoin remains strong, with net inflows of about 577,000 BTC over the past year,โ€ stated Ki Young Ju. Institutional demand has reinforced Bitcoinโ€™s market position, suggesting renewed confidence among investors. Analysts attribute this trend to strategic long-term investment strategies rather than speculative activity, potentially stabilizing the cryptocurrencyโ€™s valuation.

Increased institutional net inflows likely reflect a shift toward spot-driven markets. The inclusion of spot ETFs signifies a matured interest in Bitcoin, reducing speculative derivativesโ€™ influence, as seen with low funding rates and stable accumulations.

Shift from 2017 Speculation to Sustainable Interest via Spot ETFs

Unlike the speculative surge in 2017 driven by future contracts, current developments highlight sustained interest via spot ETFs. This change indicates evolving investment approaches following enhanced regulatory clarity post-2024.

Experts like Kanalcoin suggest ongoing institutional interest could promote greater stability, given the accumulation evidence and investment shift. Data supports this trend, with net inflows consistent over an entire year, reflecting deliberate strategic allocation.

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