Bitcoin Holders Decline as Investors Turn to Spot ETFs
Data from on-chain analytics firm Santiment reveals a decline in the number of Bitcoin addresses, indicating that investors may be shifting towards spot exchange-traded funds (ETFs). The “total amount of holders” metric tracks the number of addresses on the Bitcoin blockchain with non-zero balances. When this indicator drops, it suggests that some investors are leaving the market or consolidating their wallets. Conversely, an increase in the metric implies growing adoption as new investors open addresses and purchase Bitcoin. The trend in the total amount of holders has been mostly flat since the beginning of 2024, with a net decline of 40,000.
Possible Impact of Spot ETFs
The recent approval of Bitcoin spot ETFs by the US SEC may have contributed to the decline in BTC holders. These ETFs allow investors to gain exposure to Bitcoin’s price movements without directly owning the asset. Investors who are unfamiliar with cryptocurrencies may find ETFs more accessible than managing wallets and transactions. It is expected that more investors will make the switch to spot ETFs, resulting in a continued decline in Bitcoin addresses. However, Santiment suggests that this shift is unlikely to affect Bitcoin’s price significantly.
No Uplift in BTC Price
Despite the approval of spot ETFs, Bitcoin’s price remains relatively unchanged, hovering around $45,900. The market had anticipated this decision for some time, and it seems that the impact on price has been minimal so far.
Hot Take: Shift Towards Spot ETFs Indicates Growing Accessibility
The decline in Bitcoin addresses and the rise of spot exchange-traded funds reflect a shift towards greater accessibility for investors. By offering exposure to Bitcoin without requiring direct ownership, spot ETFs attract those who may be unfamiliar with cryptocurrencies. This trend suggests that the market is evolving to accommodate a wider range of participants and may contribute to the long-term growth and adoption of Bitcoin.
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