Description

BTC ETF Flows track the inflow and outflow of BTC from ETF wallets. ETF wallets are not a 100% certainty as many of the wallets are not publicly claimed by the ETF issuers but they are tracked by onchain analysts and tagged.

A net increase in ETF holdings signifies a bullish market sentiment, signaling a robust increase in net buying activity. Conversely, a downturn in flows typically suggests bearish market conditions, indicating a pullback in investment appetite. Additionally, tracking the ebbs and flows of ETF holdings provides invaluable insights into the competitive landscape, allowing investors to pinpoint which ETF issuers are gaining market share.

Use Case

Trader
Traders are interested in BTC ETF Flows as these flows provide insights into market sentiment and potential price movements. Understanding whether there is a net inflow or outflow of funds can help traders time their entry and exit points more effectively, capitalizing on short-term volatility driven by shifts in investor sentiment.

Researcher
Researchers focus on BTC ETF Flows to deepen their understanding of the broader cryptocurrency market dynamics and investor behavior. They analyze these flows to identify long-term trends, such as the growing acceptance of cryptocurrencies in traditional investment portfolios or shifts in institutional investor attitudes towards BTC. This data helps researchers form a macro view of the market.

Analyst
Analysts examine BTC ETF Flows to provide actionable insights to their clients or firms. By assessing the inflows and outflows, analysts can gauge the strength of investor conviction in Bitcoin and predict future market movements. This analysis is crucial for portfolio management, as it informs recommendations on asset allocation, risk management, and investment timing. Analysts use this data to build a narrative around the cryptocurrency market's health and potential future performance.

Methodology

First, we isolate a subset of wallets that have been tagged by Dune contributor Hildobby to be wallets of ETF issuers. For this, we use a combination of Dune and Arkham (note: we do not use Dune's data to do this, just to obtain wallet addresses). We then use our blockchain data to query the balances of all those wallets over time. This allows us to track the flow of BTC held by ETF issuers over time.