As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed the rise and fall of numerous assets, from tech stocks to commodities. However, the meteoric growth of Bitcoin ($BTC) has left me both intrigued and cautiously optimistic.
This week, the value of Bitcoin ($BTC) reached an astounding $73,000 and even came close to its former record high. However, it experienced a substantial drop afterward, perhaps due to a continuous increase in institutional interest for Bitcoin stored in custodial wallets.
According to data shared by the CEO of on-chain analytics firm CryptoQuant, over the past year 278,000 BTC have flowed into spot Bitcoin exchange-traded funds in the United States – with 80% of those funds coming from retail investors – compared to 670,000 BTC into whale wallets with over 1,000 BTC holdings.
Per Ki Young Ju, in custodial wallets “institutional demand is twice that of retail.”
Over the past year, there has been a significant increase in institutional interest towards Bitcoin, as approximately 670,000 Bitcoins have moved into large-scale (1K+ BTC) custodial wallets, compared to just 278,000 Bitcoins that flowed into U.S. spot exchange-traded funds (ETFs), most of which are retail investments. This suggests that the institutional demand for Bitcoin in custodial wallets is nearly double that of individual investors.
— Ki Young Ju (@ki_young_ju) October 29, 2024
According to CryptoGlobe’s recent report, the collective ownership of Bitcoin ETFs approved in the U.S. this year has crossed the 1 million Bitcoin threshold. This means that the total market value of these Bitcoin holdings now exceeds an astonishing $70 billion.
Compared to the overall Bitcoin holdings, IBIT ranks second, while Grayscale’s GBTC comes first but has experienced substantial Bitcoin withdrawals due to its transformation into a traditional Bitcoin ETF. In third position is Fidelity’s Wise Origin Bitcoin Fund (FBTC), holding approximately 178,330 BTC.
This year, Bitcoin ETFs have accumulated over $23 billion in total investments, as reported by CryptoGlobe, with the price of Bitcoin increasing more than 70% since the beginning of the year and currently trading above $72,000.
As an analyst, I find it intriguing that the Innovative Bitcoin ETF (IBIT), the market leader in its class, traded an astounding $3.3 billion in a single day. This unusual trading volume caught the attention of Eric Balchunas, senior ETF analyst at Bloomberg, who found it peculiar given that Bitcoin prices were on the rise.
1 million Bitcoin holdings have been reached just as the crypto community is commemorating the anniversary of the Bitcoin white paper, a document first shared by Bitcoin’s creator, Satoshi Nakamoto, on an email list dedicated to cryptography, exactly on October 31, 2008.
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2024-11-01 04:41