New Data Reveals Bitcoin Whales Accumulate $3 Billion Worth of BTC in Less Than 30 Days
Crypto intelligence firm IntoTheBlock has released new data showing that Bitcoin (BTC) whales have acquired billions of dollars’ worth of the cryptocurrency in under a month.
The report highlights that wallets holding over 1,000 Bitcoin, including entities such as BTC exchange-traded funds (ETFs), have experienced a significant increase in holdings during the first month of 2024. This rise includes the net inflows of $820 million into Bitcoin ETFs approved by the U.S. Securities and Exchange Commission.
Bitcoin whales, which encompass any entity or fund holding over 1,000 BTC, have seen an increase of approximately $3 billion (76,000 BTC) in their holdings so far this year. Together with GBTC, Bitcoin ETFs now hold 3.23% of Bitcoin’s circulating supply.
FUD Surrounding Grayscale’s Spot Market BTC ETF
IntoTheBlock also analyzes the fear, uncertainty, and doubt (FUD) surrounding Grayscale’s spot market BTC ETF (GBTC). The report suggests that GBTC’s outflows of $4.3 billion have raised doubts about the success of BTC ETFs.
At least $1 billion worth of these outflows were attributed to bankrupt crypto exchange FTX. Other entities that had been holding GBTC at a loss likely decided to exit once it converted to an ETF and its discount went close to zero.
GBTC initially traded at a -47.35% discount to its net asset value but gradually narrowed over time and reached zero on January 26th.
Closing Thoughts: Whales Continue to Amass Bitcoin Despite Market Correction
The accumulation of Bitcoin by whales, including BTC ETFs, highlights the increasing interest from traditional finance investors. Despite recent market corrections, the ownership of Bitcoin ETFs suggests that they are gaining traction in the mainstream investment space. However, concerns surrounding GBTC’s outflows and its impact on BTC ETFs remain.
As Bitcoin continues to trade at $42,274, the data shows that institutional investors and large entities are still confident in the long-term value and potential of the leading cryptocurrency.
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