Bitcoin held on exchanges has climbed to its highest level since June 15, according to Santiment, largely reversing a six-week drawdown that had reinforced claims spot Bitcoin ETF buying was rapidly depleting tradable supply. Exchange balances fell from about 1.337 million BTC on June 12 to roughly 1.304 million on July 28, a drop of about 33,000 BTC or 2.5%, before rebounding to about 1.332 million BTC by Aug. 16. That brought roughly 28,000 BTC back onto exchanges, undoing about 84% of the decline and leaving balances around 5,200 BTC below the June peak. Santiment had earlier shown the share of Bitcoin on centralized exchanges fell to its lowest since November 2017 by March 15, helping drive the scarcity narrative. The firm said strong ETF inflows can coexist with rising exchange supply because the Securities and Exchange Commission permits in-kind creation for spot Bitcoin ETFs, allowing authorized participants to deliver coins directly to funds, while inventory can also come from OTC desks, existing holders and other off-exchange channels. U.S. spot Bitcoin ETFs drew $853.54 million in the first full week of August, including $693.5 million for BlackRock's IBIT over five straight inflow sessions, before a $61.16 million net outflow on Aug. 12 led mainly by Fidelity and BlackRock.