What we are reading: HODL15Capital
Over the past few weeks I have been keeping up with HODL15Capital on graphics in particular that caught my attention.
Nine months ago, the SEC approved spot Bitcoin ETF trading, and since then, ETFs have seen huge inflows for eight of those nine months. Since their inception, these ETFs have seen tickets of 312,488 BTC while miners have only created 169,942 new bitcoins.
Number of Bitcoins purchased per 🇺🇸 #Bitcoin ETF every month👇$IBIT $FBTC $GBTC $ARKB $BITB $HODL $BRRR $EZBC $BTCW pic.twitter.com/mpeurOCUcR
— HODL15Capital 🇺🇸 (@HODL15Capital) October 1, 2024
These ETFs have been the fastest growing ETFs in history, like BlackRock CEO Larry Fink. fixedwith no real signs of slowing down, especially as we approach a time period that has been historically bullish for Bitcoin.
These ETFs are devouring all the available BTC and many are thinking: who could be selling right now? And according to HODL15Capital, they appear to be smaller BTC holders, selling directly into the hands of ETFs and institutions.
🚨 Small Bitcoin holders continue selling to ETFs and $MSTR 🤷♂️ pic.twitter.com/hV42fDVlps
— HODL15Capital 🇺🇸 (@HODL15Capital) September 26, 2024
We are seeing state pension funds, large institutions, wealthy investors and other major players buying and holding shares of these ETFs. Even ETF issuers like BlackRock are buying shares of their own Bitcoin ETF for their other funds. Simply put, I'm seeing smart money flowing into this asset class and while that's great for the price of BTC, it pains me to see smaller holders selling their bitcoins directly to institutions.
Holding Bitcoin for the long term has been proven to be one of the best ways to build wealth. This is a real opportunity for those interested in investing for their future, who currently do not have adequate savings, to start accumulating wealth sovereignly by accumulating BTC and holding keys to their coins. Instead, these coins are mostly “locked up” in these ETFs, where those who purchase them can only redeem their shares for US dollars and do not experience the benefits of the attributes that make Bitcoin so unique (e.g. freedom to make transactions globally). without permission of a third party).
Based on this data, I fear that many of these small bitcoin holders are missing out on a great opportunity to generate wealth through holding BTC. Furthermore, by not purchasing bitcoins directly and holding them in self-custody, instead of buying shares of ETFs, investors are missing out on what it really means to own censorship-resistant sovereign money. This sentiment often has the effect of causing investors to hold bitcoins for the long term rather than selling them short-term out of fear.
The smart money knows exactly what opportunities are here and they don't care too much about the freedom aspects of Bitcoin. They are simply filling their bags of BTC into a vehicle that suits them best.
Cheap BTC doesn't last forever. Major players will continue to purchase large amounts of ETF shares as we reach new all-time highs and beyond. If there is one thing I leave you with today: do not sell your BTC to corporations and keep the keys to your coins.
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