As Bitcoin reaches dizzying heights, surpassing its previous all-time high, a surprising trend is emerging. Indeed, the number of new millionaire portfolios created daily remains above the levels observed during the last bullish cycle. However, this situation could simply reflect a more measured approach on the part of seasoned investors. Additionally, the emergence of Bitcoin ETFs has arguably contributed to this phenomenon, with investors perhaps preferring this indirect route.
The measured rise of Bitcoin whales
Despite the price surge that propelled Bitcoin past $72,000, whales appear to be taking a cautious approach. According to Kaiko’s research, only 1,500 new millionaire wallets are created daily. This means, less than half the number recorded during the previous peak in November 2021. At the time, more than 4,000 wallets crossed the million dollar mark per day. While 2,000 other portfolios reached $10 million. On the other hand, the current figures are similar to those of July 2022, when Bitcoin fell below $20,000.
However, this apparent restraint could be explained by the gradual inflow of capital. Indeed, in 2021 a wave of investors rushed into the market, driven by the ambient euphoria. But, currently the whales seem to favor a more thoughtful approach this time. They may be waiting to see if current gains are sustainable before investing heavily. Moreover, some large investors could also choose to take profits as Bitcoin sets new records.
The impact of Bitcoin ETFs
Furthermore, the emergence of Bitcoin ETFs could also explain the relative slowness of new millionaire portfolios. Since their launch in January, nine US ETFs have already accumulated more than $28 billion in Bitcoin. However, rather than owning the assets directly, investors in these ETFs own shares. Thus, their indirect Bitcoin holdings are not reflected in the whale wallet data.
An additional factor that can explain this phenomenon lies in the increasing storage of Bitcoin holdings with regulated custodians. Coinbase and BitGo, which are among the main custodians of Bitcoin ETFs, are experiencing growing popularity. Opting for more secure and regulatory-compliant custody solutions, many investors are now moving away from personal wallets. They prefer to focus on institutional depositories. This trend thus helps to partially obscure the real scale of the new wave of wealthy Bitcoin holders.
Although modest in appearance, the current adoption of Bitcoin reflects a wise and sustainable approach. Seasoned investors seem to wait for the gains to last before making a full commitment. At the same time, the rise of Bitcoin ETFs is indirectly capturing substantial capital. Thus, despite mixed figures, a new generation of informed investors is inexorably fueling the growing adoption of BTC.
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