Spot ETFs Make Majority of BTC Holders Reluctant to Sell, Holding Rate Nears Record High
"Bitcoin spot ETFs have been one of the best ETFs ever, with $600 million worth of inflows in the last few weeks," Ophelia Snyder, co-founder of 21Shares, the world's largest crypto ETP issuer, told Bloomberg. 21Shares is the issuer of the Ark 21Shares BTC Spot ETF (ARKB). It was previously reported that net inflows into all BTC spot ETFs, including ARKB, recently hit $1 billion. As for Ethereum (ETH) spot ETFs, Snyder said, "It's hard to say at this point, and how the case for BTC spot ETFs will apply to ETH will be determined by market maturity."
These BTC ETFs have created a buy-side market where holders are not selling. "The majority of bitcoin holders are reluctant to sell at current prices," The Block quoted a Glassnode report as saying. "The percentage of BTC holders by holding period remains just below all-time highs, with holders holding on to BTC as if waiting for the spot price and volatility to rise. However, there is potential selling pressure among addresses that have held BTC for 1-2 years. Many of them are linked to GBTC." Meanwhile, TheBlock, citing a K33 research report, said, "BTC spot trading volume has been on a steady rise since the ETF's approval. However, most of the movement around BTC spot ETFs is likely related to OTC trading without affecting the spot market."