NIKOLAUS: Retail Keeps Selling Bitcoin to ETFs, Don't Sell Your BTC To Whales

Credit : bitcoinmagazine.com

What we learn: HODL15Capital

For the previous few weeks I have been maintaining with HODL15Capital on Lately there have been two graphs particularly that he posted that caught my consideration.

9 months in the past, the SEC accepted spot Bitcoin ETFs for buying and selling, and since then, the ETFs have seen huge inflows for eight of these 9 months. Since their inception, these ETFs have seen progress inflow of 312,488 BTC, whereas miners solely created 169,942 new bitcoin.

Variety of Bitcoin purchased by 🇺🇸 #Bitcoin ETFs each month👇$IBIT $FBTC $GBTC $ARKB $BITB $HODL $BRRR $EZBC $BTCW pic.twitter.com/mpeurOCUcR

— HODL15Capital 🇺🇸 (@HODL15Capital) October 1, 2024

These ETFs are the quickest rising ETFs in historical past, based on BlackRock CEO Larry Fink declaredwith no actual indicators of slowing down, particularly as we enter a interval that has traditionally been bullish for Bitcoin.

These ETFs are gobbling up all obtainable BTC, leaving many pondering: who may very well be promoting proper now? And based on HODL15Capital, it seems to be smaller BTC holders, promoting instantly into the fingers of the ETFs and establishments.

🚨 Small Bitcoin holders proceed to promote into ETFs and $MSTR 🤷‍♂️ pic.twitter.com/hV42fDVlps

— HODL15Capital 🇺🇸 (@HODL15Capital) September 26, 2024

We see authorities pension funds, massive establishments, rich buyers and different massive gamers shopping for and holding shares of those ETFs. Even ETF issuers like BlackRock are shopping for shares of their very own Bitcoin ETF for his or her different funds. Lengthy story brief, I see sensible cash flowing into this asset class and whereas that is nice for the worth of BTC, it pains me to see smaller holders promoting their bitcoin on to the establishments.

Holding Bitcoin for the long run has been confirmed to be among the finest methods to construct wealth. This can be a actual alternative for these fascinated by investing of their future, and who could not at present have adequate financial savings, to construct wealth in a sovereign means by accumulating BTC and proudly owning the keys to their cash. As a substitute, these cash are largely “locked up” in these ETFs, the place those that purchase them can solely trade their shares for US {dollars} and don’t expertise the advantages of the options that make Bitcoin so distinctive (e.g. the liberty to transact globally ). with out the consent of a 3rd celebration).

Based mostly on this information, I worry that many of those smaller Bitcoin holders are lacking out on an important alternative to construct wealth by holding BTC. Moreover, by not buying Bitcoin instantly and holding it in-house, versus shopping for shares of the ETFs, buyers are lacking out on what it actually means to personal censorship-resistant authorities cash. Such a sense typically leads to buyers holding bitcoin for the long run, fairly than promoting within the brief time period primarily based on worry.

The sensible cash is aware of precisely what alternatives lie right here, and so they do not actually care concerning the freedom features of Bitcoin. They merely fill their BTC luggage in a car that fits them higher.

Low-cost BTC does not final eternally. Main gamers will proceed to scoop up enormous quantities of shares from the ETFs as we attain new all-time highs and past. If there may be one factor I wish to say to you right this moment: do not promote your BTC to the firms and maintain the keys to your cash.