Eric Balchunas, Bloomberg’s leading ETF expert, has predicted that Bitcoin ETFs are on track to overtake Satoshi Nakamoto as the largest holders of the flagship cryptocurrency by Christmas.
Their combined holdings currently stand at a whopping 938,533 BTC, according to the most recent data provided by the analyst.
As reported by U.Today, Bitcoin recently recorded massive inflows of roughly $550 million.
The net inflows of Bitcoin ETFs are now close to reaching the $20 billion milestone.
Are Bitcoin price moves correlated with ETF flows?
In a separate comment, Balchunas also spoke about Bitcoin’s rather underwhelming price action. “Price is the net result of buyers and sellers and so if ETFs were buyers then the only answer is that other holders were selling as much or more. Once again the call is coming from inside the house,” he said.
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The leading cryptocurrency is currently changing hands at $65,699, according to CoinGecko data. Even though the cryptocurrency recently experienced a substantial rally, it is still down more than 11% from its current all-time high.
David Lawant, head of research at cryptocurrency brokerage FalconX, claims that there is actually a “statistically significant” relationship between changes in ETF flows and prices. The correlation coefficient currently stands at 0.30. Notably, this correlation has been strengthening as of recently.
“Given that ETFs have been the primary source of new capital into the crypto market in 2024, this correlation may continue to intensify if the market finds a sustainable direction,” the analyst said.