Ki Young Ju is the founder and CEO of CryptoQuant – a Blockchain analytics company. noticed a curious trend. The founder of X shared a screenshot suggesting that Bitcoin “old whales” Some investors are shifting to “new whales,” Mainly traditional financial heavyweights such as Fidelity or BlackRock.
Recently, the United States Securities and Exchange Commission approved that these new whales list Bitcoin spot exchange-traded Funds (ETFs), which are open to all investors.
“Old Whales” Move Coins: Sell or Risk Mitigation
Commentators responding to the post of the founder believe that these are signs. “old whales” Mitigate risk by transferring your Bitcoins to a regulated investment vehicle like spot bitcoin ETFs. They believe that moving their Bitcoins from self-custody into a regulated investing vehicle, like spot Bitcoins ETFs, is the best way to cover unexpected outcomes.
It could work out to be a strategic move if this is your approach. Bitcoin holders are able to transact with no third-party involvement. Note that this is a development which coincides in a drop of BTC stock on the major exchanges, such as Binance or Coinbase. GBTC.
Since the launch of Bitcoin spot ETFs in 2013, there has been a rapid decline, indicating a possible departure from exchanges. While the operators of GBTC unwind the product, they convert it into a Bitcoin ETF on the spot in response to a court order.
Can Spot BTC ETFs gain traction?
That’s right, it is. “old whales” The fact that BTC is being moved to ETFs and other centralized products contradicts its core philosophy as a currency for financial transactions. financial self-sovereignty. If more consumers, mostly retailers, choose to own It remains to be determined whether Bitcoin ETFs will eventually replace the coins themselves.
If they are required to expose themselves to BTC, institutions may be legally obligated to use an approved product. But retailers have the option to purchase directly from an exchange or mine. This might encourage more retail stores to choose BTC.
This is an indication of a trend that will likely continue in the months ahead, as we approach the anticipated Bitcoin halves. This is scheduled for April 2024. It will reduce BTC’s circulating stock and could potentially drive prices higher. BTC’s prices have been stable and firm above $70,000 as of the date this article was written.
Chart from TradingView, with a feature image by DALLE
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