Ki Young Ju, the founder of CryptoQuant, a blockchain analysis company, has noticed A curious trend. In a post on
The United States Securities and Exchange Commission (SEC) recently approved these new whales to include spot bitcoin exchange-traded funds (ETFs) for all investors.
“Old whales” moving coins: sell or mitigate risk?
While a definitive liquidation has not been confirmed, commenters who responded to the founder's post believe these “old whales” could be mitigating the risk. In their assessment, moving your bitcoin stash from self-custody to a regulated investment vehicle like bitcoin Spot ETFs is a better measure to cover unexpected eventualities.
If this is the approach, then it could be strategic. bitcoin holders can carry out transactions without depending on a third party. Notably, this development coincides with a significant drop in btc inventory on major exchanges such as Coinbase and Binance, as well as GBTC.
The decline has accelerated since the introduction of spot bitcoin ETFs, suggesting a possible exit from exchanges. Meanwhile, GBTC traders are unwinding the product and converting it into a spot bitcoin ETF following a court ruling.
Will btc spot ETFs gain traction?
Still, the fact that “old whales” are moving their currencies into centralized products like ETFs contradicts the core philosophy of btc as a tool for financial self-sovereignty. It remains to be seen whether more users, primarily retail, will choose to own spot bitcoin ETF shares rather than the underlying coins directly.
Institutions could be required by law to use a regulated product if they need to be exposed to btc. However, retailers can choose to buy directly from the bags or mine. This freedom could lead to more retailers choosing to purchase btc.
This trend comes ahead of the long-awaited bitcoin halving. This event is scheduled for mid-April 2024 and will further reduce the circulating supply of btc, which could drive prices higher. Before that, btc prices are firm, stable above $70,000 at the time of writing.
Featured image of DALLE, TradingView chart
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