Growth Of Bitcoin ETFs & Other Instruments Doesn’t Support Supply Shock Narrative

Data shows while the Bitcoin supply present on exchanges has been trending down, growth in other investment vehicles like ETFs and WBTC has been making up for this drop. Bitcoin Exchange Reserves Decline, But ETF And Other Instruments Enjoy Growth As per the latest report from Arcane Research, BTC exchange reserves have seen significant decline this year, but the growth in newer investment instruments like ETFs has made up for it. The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently stored in wallets of all exchanges. Traditionally, this supply on exchanges has been considered the available trading supply of the coin. So, when the indicator’s value moves up, it’s taken as a bearish sign for the coin’s price. On the other hand, a decrease may imply bullish trend. The trend with the exchange reserve has been that of constant decline since half a year now. Because of this “supply shortage”, many traders believe in a bullish outcome for Bitcoin in the long term. Related Reading | Bitcoin Bullish Signal: Open Interest Shows Strong Trend Up However, the report seems to suggest a different story. Here is some data that shows the percentage of the circulating BTC supply in different segments: Looks like most sectors have seen growth in the past year | Source: The Arcane Research Weekly Update - Week 50 As you can see in the above graph, while the...