Analysis of blockchain data reveals that Bitcoin exchange-traded funds (ETFs) have experienced three significant periods of increased investment from long-term holders during this market cycle.
Spikes in Bitcoin Coin Days Destroyed Coincide with Initial ETF Inflows
As highlighted in a post on X by CryptoQuant analyst Maartunn, Bitcoin’s market dynamics are showing notable shifts involving older coins and the influence of spot ETFs. These ETFs are investment products traded on conventional exchanges, giving investors a means to indirectly invest in Bitcoin without the complexities of direct ownership.
The US saw the introduction of Bitcoin spot ETFs in January of 2024. These funds have generally seen positive growth, characterized by specific intervals of substantial investment influx. A primary advantage of ETFs is their accessibility for investors new to cryptocurrencies, providing a user-friendly method to gain Bitcoin exposure.
When an investor utilizes an ETF, the fund procures Bitcoin equivalent to the investment amount on their behalf. This activity is reflected in on-chain transactions moving Bitcoin into wallets associated with the ETF.
The chart below, shared by Maartunn, illustrates the trend of Bitcoin spot ETF net flow over a 30-day period since the beginning of 2024.
The graphic indicates multiple instances of significantly positive Bitcoin spot ETF net flows. These correspond directly to periods of elevated ETF demand.
Intriguingly, these substantial inflow waves exhibit a recurring characteristic. As depicted in the chart, Coin Days Destroyed (CDD) showed distribution signals alongside the peaks in net flow.
The CDD is an on-chain metric that quantifies the cumulative “coin days” destroyed during Bitcoin network transactions. A “coin day” represents one Bitcoin held unmoved on the blockchain for a single day. When a coin inactive for a period is transacted, its accumulated coin days are reset to zero, effectively destroying the previously accrued coin days.
In general, upticks in CDD suggest activity among long-term Bitcoin holders. Because of their prolonged holding periods, these individuals accumulate a considerable number of coin days. When these holders finally transact, it triggers a large-scale destruction of coin days.
The substantial Bitcoin ETF net inflow periods in the summer of 2024, the fall of 2024, and the summer of 2025, were each marked by coinciding distribution signals from the CDD. This implies a movement of coins from established holders to new investors via these ETF investment vehicles.
Since the latest period, the ETF net flow has subsided, indicating a decrease in demand. According to Maartunn, “ETF inflows are key. Without strong new demand, selling pressure from new holders could increase.”
BTC Price
As of this writing, Bitcoin’s price is approximately $110,500, reflecting a 2% increase over the past week.