ETFs
Bitcoin whales sell as new investors buy ETFs
Recent market data has revealed mixed behavior among Bitcoin investors, with large holders reportedly selling their positions while retail investors are showing increasing interest in recently launched Bitcoin exchange-traded funds (ETFs).
This was noted by economist Peter Schiff, who characterized the divergence as a division between “smart investors” who are exiting bitcoin positions and “dumb investors” who are entering through ETFs. In his commentary, Schiff referred to participants who sold their bitcoins on exchanges as “smart investors.”
Based on trading trends and ETF inflows, it appears the smart money is selling #Bitcoin on the spot market while dumb money buys it via ETFs. Kudos to the Bitcoin whales for pulling this off. They set up #BitcoinETF Investors must be the holders of the bags.
— Peter Schiff (@PeterSchiff) July 7, 2024
Over the past few weeks, the market has seen a number of smart money moves from whale addresses to different exchanges.
Notably, on July 5, two whale addresses were transferred 9,301 BTC on Binance crypto exchange. This follows a series of substantial transfers totaling around $3 billion in Bitcoin value the day before.
At the same time, the Bitcoin ETF spot market is seeing notable inflows. Fidelity Bitcoin ETF (FBTC) saw $117 million in new investments on Friday, followed by Bitwise’s (BITB) offering of $30 million. Other ETF providers including BlackRock, Grayscale, ARK 21Shares and WisdomTree are also seeing increased interest from investors.
Some in the cryptocurrency industry have speculated that long-term holders could take advantage of current market conditions to realize gains, while new investors seek exposure through regulated ETF products.
Read also : Peter Schiff Slams Bitcoin Bulls, Mocks Institutional Demand