Bitcoin (BTC) has recently experienced a surge after growing net purchases from United States spot exchange-traded funds (ETFs). With increasing demand from ETFs, daily purchase volumes have not yet reached the levels seen in February and March, which is causing some concern among investors. However, in the first quarter of 2024, Bitcoin’s rally was driven by the growth of the asset’s balance on over-the-counter (OTC) desks remaining negative.
Now, there are more bitcoins available on OTC desks than at the start of the year, leading to a lower share of ETF purchases representing the total BTC balance. For Bitcoin to record new highs, ETF demand needs to rise while OTC desks continue to experience lower inflows.
