What we are reading: HODL15Capital
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Over the past few weeks I’ve been keeping in touch with HODL15Capital on X, who has done a tremendous job posting some of the hottest incoming market data regarding US Spot Bitcoin ETFs. Recently, he posted two charts in particular that caught my attention.
Nine months ago, the SEC approved a spot Bitcoin ETF for trading, and since then, the ETF has seen heavy inflows during eight of those nine months. Since their inception, these ETFs have seen inflow While out of 312,488 BTC, miners have created only 169,942 new Bitcoins.
Number of Bitcoins purchased by ЁЯЗ║ЁЯЗ╕ #bitcoin ETFs every month$IBIT $fbtc $GBTC $ARKB $BITB $HODL $brrr $EZBC $BTCW pic.twitter.com/mpeurOCUcR
– HODL15Capital ЁЯЗ║ЁЯЗ╕ (@HODL15Capital) 1 October 2024
Like BlackRock CEO Larry Fink, These ETFs Have Been the Fastest-Growing ETFs in History saidThere are no real signs of slowing down, especially as we head into what has historically been bullish for Bitcoin.
These ETFs are gobbling up all the available BTC which has many people wondering: who could possibly be selling right now? And according to HODL15Capital, it appears it is small BTC holders who are selling directly into the hands of ETFs and institutions.
ЁЯЪи Small Bitcoin holders continue to sell ETFs $mstr pic.twitter.com/hV42fDVlps
– HODL15Capital ЁЯЗ║ЁЯЗ╕ (@HODL15Capital) 26 September 2024
We are seeing state pension funds, large institutions, wealthy investors and other major players buy and hold shares of these ETFs. Even ETF issuers like BlackRock are buying shares of their own Bitcoin ETFs for their other funds. Long story short, I see smart money in this asset class and, while it’s great for the price of BTC, it makes me sad to see small holders selling their Bitcoins directly to institutions.
Holding Bitcoin for the long term has proven to be one of the best ways to build wealth. This is a real opportunity for those who are interested in investing for their future, who do not currently have proper savings, to start building wealth in a sovereign way by depositing BTC and holding the keys to their coins . Instead, these coins are mostly being тАЬlockedтАЭ into these ETFs, where those who buy them can only redeem their shares for US dollars and do not experience the benefits of the features that Bitcoin offers. What makes it so unique (for example, the freedom to transact globally without permission from any third party).
Based on this data, I fear that many of these small Bitcoin holders are passing a huge opportunity to make money by holding BTC slip through their fingers. Furthermore, by not buying Bitcoin directly and holding it in self-custody, unlike buying shares of an ETF, investors are missing out on what it really means to own censorship-resistant sovereign money. Such sentiment often forces investors to hold Bitcoin for the long term rather than selling in the short term based on fear.
The smart money knows exactly what the opportunity is here, and they don’t care much about the freedom aspects of Bitcoin. They are simply loading their BTC bags into the vehicle that is better for them.
Cheap BTC doesn’t last forever. The major players will continue to gain massive amounts of ETF shares as we reach new all-time highs and beyond. If there’s one thing I leave with you today: Don’t sell your BTC to corporations, and keep the keys to your coins.
