SimonaD2023-08-22

Digital assets holdings and their impact on Bitcoin and Ethereum prices

Following the *Fund holding* indicator, we can see in the chart that since June 2022, fund holdings indicator has entered a downward trend on both Bitcoin and Ethereum. If on Bitcoin we can consider that there have been periods of price increases with several fund distribution zones, on Ethereum we have had almost a constant decrease and distribution since then. How do we interpret the chart? We observe a decrease in the demand for indirect investments in Bitcoin and Ethereum from asset management funds (ETFs, trusts) and, practically, a gradual exit from the market by decreasing their holdings. This is also impacting the decrease in trading liquidity and interest overall. To consider a healthy price increase, we would need to see a steady increase in investment interest in digital assets from the funds. Until then, in correlation to other datas, it is necessary to be cautious and monitor the trends of this indicator as of possible real help in identifying a market direction.