Bitcoin (BTC) whales have amassed billions of dollars worth of crypto kingpins in less than 30 days, according to new data from cryptocurrency intelligence firm IntoTheBlock.
In a new article, the crypto analysis platform states that the amount of BTC held in wallets of over 1,000 Bitcoins has increased sharply in the first month of 2024.
IntoTheBlock points out that this figure includes entities such as the BTC exchange-traded fund (ETF), which was approved by the U.S. Securities and Exchange Commission (SEC) earlier this year.
“A “whale” includes any organization, person, or fund (including ETFs) with more than 1,000 BTC. Net inflows into Bitcoin ETFs are $820 million, but Bitcoin whales are adding about $3 billion (76,000 BTC) by 2024. Including GBTC, Bitcoin ETFs currently hold 3.23% of Bitcoin’s circulating supply.
This is a higher supply share than for gold, where $110 billion of the roughly $10 trillion market capitalization is held in U.S.-traded ETFs (about 1% of supply). Despite the Bitcoin correction, the high ownership of Bitcoin ETFs suggests that these are indeed gaining considerable traction among traditional financial investors. ”
The analytics firm went on to analyze the fear, uncertainty, and doubt (FUD) surrounding Grayscale’s spot market BTC ETF (GBTC), stating that $4.3 billion in outflows cast doubt on the success of the BTC ETF. Ta.
IntoTheBlock found that at least $1 billion worth of leaks came from bankrupt cryptocurrency exchange FTX.
“FTX’s bankruptcy estate was holding GBTC at a discount and had chosen not to sell at a loss prior to its expected ETF conversion. Many others, including GBTC, are likely to decide to exit once GBTC is converted to an ETF and the discount is close to zero.”
GBTC traded at a discount of -47.35% to its net asset value on February 13, 2023. The discount gradually narrowed over time and reached zero on January 26th.
At the time of writing, Bitcoin is trading at $42,274, with a slight decline over the past 24 hours.
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Featured Image: Shutterstock/Stavtceva Iana