The recent Coinbase x Glassnode Q2 report highlights a notable trend: Wall Street’s deepening engagement with Bitcoin via exchange-traded funds (ETFs). With approximately 851,000 BTC under management, these ETFs account for about 4.3% of all circulating Bitcoin, underscoring their growing impact on the cryptocurrency market. Initially, Bitcoin ETFs saw robust weekly inflows ranging from $1.2 billion to $2.5 billion, though these have moderated since late March, indicating a shift towards market stabilization.

This shift is largely driven by the advent of spot Bitcoin ETFs, which have fundamentally altered market dynamics by significantly contributing to the liquidity and trading volume on centralized exchanges. These developments not only facilitate smoother transactions but also set new trading benchmarks. Investors observing the ETF trends will notice that significant outflows often align with market price declines, suggesting that ETFs are pivotal in shaping Bitcoin’s supply-demand equation and overall market behavior.

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