According to BlockBeats, on-chain data analyst Murphy has highlighted the significance of ETF net inflows as an indicator of institutional investment in Bitcoin. Historically, there is a strong correlation between Bitcoin price increases and substantial ETF inflows. On September 10 and 11, net inflows exceeded 9,700 BTC, a pattern similar to occurrences in April and June this year, where market rallies coincided with sudden increases in ETF inflows.
However, recent inflow structures differ from previous instances. During the market rallies in April and June, ETF holdings increased significantly more than CME futures positions, indicating that funds primarily entered through spot ETFs, creating substantial buying demand. Despite the noticeable increase in ETF inflows on September 10 and 11, the corresponding spot exposure was relatively small, limiting the impact on actual spot buying pressure for Bitcoin.
For a sustained market rally, it is crucial not only to observe increased ETF inflows but also substantial spot exposure purchases to genuinely support the continuation of the trend. This analysis is intended for educational purposes and should not be considered investment advice.
