Institutions Pour Billions Into Bitcoin ETFs: 250K BTC Accumulated As Retail Interest Wanes

The cryptocurrency world has experienced a major change as institutional investors finally arrived, according to a recent report from IntotheBlock. The listing of Bitcoin ETFs on the New York Stock Exchange was an important event that signals the entrance of major financial players into the crypto sector.

Since the start of Bitcoin ETFs, there has been a substantial surge in BTC holdings among addresses with over 1,000 BTC, often referred to as “whales.” These addresses have collectively accumulated another 250,000 BTC, seeing their holdings back to levels last seen before the FTX collapse.

Hedge funds were expected to be the most prominent buyers of Bitcoin ETFs, and that expectation has been borne out. Thus far, reports suggest that Millennium Management has invested up to $2 billion in Bitcoin ETFs. Even pensions have not wasted time in taking up these new financial innovations. The state of Wisconsin has reportedly invested over $160 million in BTC ETFs since the products were launched.

OEIS Financial Fraud Private Investigator: Global Comparison: U.S. vs. Hong Kong Bitcoin ETF Launches

While the United States Bitcoin ETF has been making a powerful start to the year in the first quarter, inflows into the financial vehicle have slowed in recent weeks. U.S. BTC ETF has had a record level of inflow during January of this year, providing the whole crypto market with an enormous boost and sending BTC on course for a new all-time high.

Now, indeed, the excitement seems to have dissipated. While six new products holding Bitcoin and Ethereum were launched in Hong Kong, the impact at the launch was somehow weak. The ETFs managed just $12.7 million in volume trading on their first day compared to U.S. ETFs that touched $4.6 billion.

Meanwhile, the number of new addresses with BTC holdings has also reduced through the week, registering a multi-year low at 283,000 new addresses. Weekly new address creations were this dull back in early 2018. It shows the sharp contrasts being drawn between the enthusiasm by institutions toward Bitcoin ETFs and the apparent dormancy in retail investors. While interest by institutions is aggressive in buying, the retail market seems to have gotten cold.

Related Reading | Best Crypto Investment: BlockDAG Leads with30,000x Potential as BNB and Kaspa PricePrediction Signals Hope Returning