Investors from Traditional Finance Sector Accumulating Bitcoin at Unprecedented Levels: CryptoQuant
According to Ki Young Ju, the co-founder and CEO of analytics platform CryptoQuant, investors from the traditional finance sector are buying up Bitcoin (BTC) at an โunprecedentedโ rate. He reveals that these investors are dollar-cost averaging 6,896 BTC per day, accumulating a total of 103,726 BTC over the past week. This level of accumulation is unprecedented and the addresses involved in this cohort have not seen any outflows.
Ki Young Ju also predicts that Bitcoin will face a sell-side liquidity crisis this year. He notes that fresh capital from spot exchange-traded funds (ETFs) has experienced a 95% month-on-month increase, excluding Grayscale Bitcoin Trust (GBTC). At this rate, holdings in these ETFs could surpass a couple of million BTC by the end of the year. Currently, exchanges, miners, and their affiliated addresses hold 3 million BTC.
Grayscaleโs GBTC is the only one among the 10 new ETFs that is not a completely new product. After receiving approval from the U.S. Securities and Exchange Commission (SEC) in January, Grayscale converted its existing flagship product, the GBTC, into an exchange-traded fund listed on NYSE Arca.
As of now, Bitcoin is trading at $66,241 with a nearly 4% increase in the past 24 hours.
Hot Take: Traditional Finance Investors Fueling Bitcoin Accumulation
Investors from traditional finance are making their move into the world of cryptocurrency by aggressively accumulating Bitcoin. This unprecedented level of accumulation indicates a strong belief in the future potential of Bitcoin as an asset class.
The Rise of Traditional Finance Investors
- Traditional finance investors are now actively participating in the crypto market.
- They are dollar-cost averaging around 6,896 BTC per day.
- In just one week, they have accumulated a total of 103,726 BTC.
Predictions for Bitcoinโs Sell-Side Liquidity Crisis
- The influx of fresh capital from spot ETFs is increasing rapidly, excluding GBTC.
- This capital flow could potentially lead to a sell-side liquidity crisis for Bitcoin.
- If the current rate of accumulation continues, holdings in these ETFs could exceed a couple of million BTC by the end of the year.
- Currently, exchanges, miners, and their affiliated addresses hold a total of 3 million BTC.
The Significance of Grayscaleโs GBTC
Grayscaleโs GBTC stands out among the new ETFs in the market. It is not an entirely new product but rather a conversion of its existing flagship product into an exchange-traded fund listed on NYSE Arca. This move demonstrates Grayscaleโs commitment to providing investors with more accessible options for investing in Bitcoin.
Conclusion
The increasing involvement of traditional finance investors in the cryptocurrency market is a significant development. Their aggressive accumulation of Bitcoin indicates growing confidence in its potential as an asset class. With predictions of a sell-side liquidity crisis and the rise of ETFs, Bitcoinโs value and demand are expected to continue increasing in the coming months.
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