Old Bitcoin Supply Moves Into ETFs: Three Waves of Inflows Identified

Recent on-chain data indicates that Bitcoin spot exchange-traded funds (ETFs) have experienced three significant waves of inflows from veteran investors in this cycle. According to a new post by CryptoQuant author Maartunn on X, Bitcoin's Coin Days Destroyed (CDD) has surged alongside earlier ETF net inflows. These spot ETFs allow investors to gain exposure to Bitcoin without directly owning the asset, providing a convenient option for those unfamiliar with the crypto world.

Key Points

Bitcoin spot ETFs have seen continued growth since their launch in the US in January 2024.
The main attraction of ETFs lies in their convenience for investors not well-versed in cryptocurrencies.
The three major inflow waves correspond with distribution signals from the CDD, indicating a shift from veteran hands to new demand.
Recent ETF net inflows have calmed to neutral levels, suggesting a decrease in demand.
Bitcoin is currently priced around $110,500, up 2% over the past week.

In-Depth Analysis

The introduction of Bitcoin spot ETFs has opened a new avenue for traditional investors to engage with this asset class. Over the past few months, the three waves of inflows not only highlight the market's enthusiasm for ETFs but also reflect the strategy of HODLers deciding to cash out a portion of their assets at opportune moments. CDD data shows that when long-held Bitcoin is sold by veteran investors, the accumulated