Bitcoin exchange reserves hit highest since June as ETF supply strain eases

Bitcoin exchange reserves have climbed to their highest level since June 15, easing supply shortage concerns that had been tied to ETF demand, according to on-chain analytics platform Santiment. Exchange-held BTC fell by about 33,000 BTC, or 2.5%, from around 1.337 million BTC on June 12 to about 1.304 million BTC on July 28, before rebounding to roughly 1.332 million BTC as of Aug. 16, recovering about 84% of the decline. Santiment said new ETF demand can be met through OTC desks and existing holders, meaning Bitcoin does not necessarily need to leave exchange wallets, and added that spot ETF inflows and rising exchange balances can occur at the same time.