Bitcoin Whales Accumulate as Market Eyes Spot ETF

Bitcoin Accumulation by Whales and Sharks

Large Bitcoin investors, known as sharks and whales, are accumulating Bitcoin at an unprecedented pace in 2023. They now control approximately 13.03 million coins, accounting for over 66% of the circulating supply. This accumulation surge follows BlackRock's filing to launch a spot Bitcoin exchange-traded fund (ETF) in the U.S., sparking renewed interest from major investors.

Impact of BlackRock's ETF Proposal

The proposed ETF by BlackRock, the world's largest asset manager, has positively influenced the market. Following the announcement, Bitcoin's price increased by 2.5% within 24 hours, according to CoinGecko. Ether (ETH), the second-largest cryptocurrency, also saw a 4% price rise. This interest isn't limited to Bitcoin; Tether (USDT), a stablecoin, is experiencing similar accumulation trends.

Tether's Growing Holdings

Wallets containing between 100,000 and 10 million USDT tokens have increased their holdings, now controlling around $15 billion of the stablecoin. This marks a six-week high in Tether accumulation, highlighting a broader trend among large investors.

Timing and Market Movements

The accumulation began in earnest in June, shortly after BlackRock's ETF announcement. Investors purchased over $2 billion worth of Bitcoin between June 17 and July 10. They remained active during market corrections, buying more than 11,600 BTC from August 17 to August 25.

Market Sentiment and Future Outlook

This trend of accumulating Bitcoin and Tether by large investors is seen as a bullish signal. It reflects high confidence levels and suggests expectations of future price increases. However, the market's response to these developments will be closely monitored as the situation evolves.