Glassnode: Approval of spot Bitcoin ETF could bring in $70 billion in capital inflow

ChainCatcher news, researchers at Glassnode detailed in a report that a surge in demand will challenge the relatively limited supply of liquid Bitcoin, potentially increasing volatility. Research from blockchain data company Glassnode indicates that there is a significant amount of suppressed demand for spot Bitcoin ETF products. Analysts estimate that if stock, bond, and gold investors allocate just a small portion of their assets, up to $70.5 billion could flow into the market. Even more conservative forecasts suggest that hundreds of billions of dollars will enter the market in the initial years.

Glassnode's research report explains that to understand the market dynamics that may emerge after the ETF launch, we now need to turn our attention to the available supply of Bitcoin. The analysis emphasizes how long-term accumulation has tightened the circulating supply of Bitcoin. Currently, over 76% of Bitcoin is held long-term, concentrated in holders who are less responsive to price fluctuations. Glassnode's research shows that the supply from short-term and active traders has recently hit a multi-year low.