Is the declining interest in Bitcoin spot ETFs attributed

Iti9

The supply absorption of BTC spot ETFs has turned negative, indicating a temporary decline in interest in BTC spot ETFs.

Recently, the decline in the supply absorption of Bitcoin (BTC) by spot Bitcoin exchange-traded funds (ETFs) suggests a decrease in interest in this asset class.

CryptoQuant analyst Oinonen_t highlighted this in a new report.

BTC Spot ETF market slightly declines
The BTC supply absorption of BTC ETFs tracks the rate at which these funds acquire or absorb newly mined tokens.
This metric is significant because an increase in spot ETF supply absorption may lead to upward pressure on BTC prices.
Conversely, a decrease in demand may indicate a potential decline in the value of the dominant currency.
Oinonen_t found that the supply absorption of the coin has recently turned negative and dropped to a low of -0.38. The analyst confirmed this stance, stating:

"Despite the hype around the halving in 21 days, the spot price of Bitcoin has not fluctuated significantly in the past 30 days. One explanation for the stagnant price movement is the negative supply absorption of ETFs."
The analyst added that when spot ETFs cannot absorb newly mined tokens,

"The demand for about 900 bitcoins issued daily is certainly coming from other sources."
However, in the current market, retail investors who usually accumulate these coins have shifted their focus to meme coins.
In recent weeks, the value of some meme coins based on Solana [SOL] has grown by triple digits, resulting in a significant increase in meme coin market capitalization.

According to Oinonen_t,
"While retail investors show increasing interest in Bitcoin, their attention may be focused on new tokens and 'meme coins' based on Solana."

The analyst believes that negative supply absorption is a temporary flaw in the spot ETF market,

"The big picture still looks hopeful. Over the years, I believe Bitcoin's market cap will try to match that of gold, which means the current spot price will rise by 1000%."

Since its launch, trading volume for Bitcoin spot ETFs has significantly increased. As of writing, the daily cumulative trading volume for this asset class has surged by over 182%, reaching $350 billion.
The assets under management (AUM) of the Grayscale Bitcoin Trust Fund (GBTC) are valued at $2.4 billion, currently holding the largest market share in the BTC spot ETF market.

Jafar224

That indicates there's significant interest indeed.