US Institutions See Net Inflows in Bitcoin as Demand for Dollar-Based Stablecoins Grows

The United States has transitioned to a net inflow country for Bitcoin (BTC), with demand for dollar-based stablecoins increasing globally. According to a Chainalysis report, the US has emerged as a net inflow country for Bitcoin for the first time since 2022. Notably, 53,200 BTC were recorded as net inflows in large transactions exceeding $10 million. This suggests that while individual investors are withdrawing Bitcoin, institutional investors are expanding their asset accumulation. The upcoming launch of a Bitcoin spot exchange-traded fund (ETF) in early 2024 is expected to facilitate the inflow of institutional funds, and there is also a trend of Bitcoin moving towards long-term holding structures on exchanges. Internationally, 99.1% of stablecoin transactions occur in dollars, providing a pathway for overseas users without US bank accounts to access dollars. This trend is also impacting the US Treasury market, with stablecoin issuers managing a significant portion in short-term US Treasury bonds. Ultimately, a structure is forming where US institutional investors accumulate Bitcoin as an investment asset, while overseas users utilize dollar-based stablecoins for payments and value storage.

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