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Inflows into Canadian Bitcoin ETFs hit an all-time high: Glassnode

Canadian bitcoin exchange-traded fund (ETF) holdings have risen to all-time highs, according to recent research, and spot-based products are leading the way.

Canadian bitcoin ETFs have increased holdings by 6,594 bitcoin (BTC) since January to an all-time high total of 69,052 BTC.

The Purpose Bitcoin ETF saw its largest increase in holdings over the period, with net growth of 18.7% to 35,000 BTC, according to Glassnode.

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An ETF is an exchange-traded fund that allows investors to speculate on the price of an asset without having to own one. The Purpose Bitcoin ETF, a spot Bitcoin ETF, currently has approximately $1.68 billion in assets under management. No such spot bitcoin ETF is currently available in the US, but the metrics show that investors are hungry for the Canadian product.

Blockchain analytics firm Glassnode pointed this out in its recent report week OnChain report that the crypto exchange outflow rate peaked at 96,200 BTC per month in 2022.

Commenting on the juxtaposition of events related to bitcoin movements, the analytics provider said:

“It’s quite impressive to see such strong outflows from exchanges (spot holdings) as well as inflows into ETF products, DeFi applications and on-chain wallets, despite the numerous macroeconomic and geopolitical headwinds of the last few months.”

Bitcoin accumulation has been strong since around mid-March. The largest accumulators were so-called shrimp and whales. Shrimp are investors holding 0 to 100 BTC while whales are those holding 1,000 to 10,000 BTC.

Among the biggest recent buyers is Terra’s Luna Foundation Guard (LFG), which is on a mission to acquire $3 billion worth of BTC.

Related: Terra buys $139 million worth of Bitcoin, wallet reaches 31,000 BTC

With just 2 million BTC left to mine since the 19 millionth coin was mined on April 1st, Bitcoin’s scarcity is becoming a notable concern as adoption and investment across nations, businesses and individuals increases.

Glassnode concluded that “the scarcity and pristine nature of bitcoin as collateral may come back to the fore.”