What we read: HODL15Capital
For the past few weeks I’ve been keeping up with HODL15Capital on Recently there have been two graphs in particular that he posted that caught my attention.
Nine months ago, the SEC approved spot Bitcoin ETFs for trading, and since then, the ETFs have seen massive inflows for eight of those nine months. Since their inception, these ETFs have seen growth inflow of 312,488 BTC, while miners only created 169,942 new bitcoin.
Number of Bitcoin bought by 🇺🇸 #Bitcoin ETFs every month👇$GA $FBTC $GBTC $ARKB $BITB $HODL $BRRR $EZBC $BTCW pic.twitter.com/mpeurOCUcR
— HODL15Capital 🇺🇸 (@HODL15Capital) October 1, 2024
These ETFs are the fastest growing ETFs in history, according to BlackRock CEO Larry Fink declaredwith no real signs of slowing down, especially as we enter a period that has historically been bullish for Bitcoin.
These ETFs are gobbling up all the available BTC, leaving many thinking: who could be selling right now? And according to HODL15Capital, it appears to be smaller BTC holders, selling directly into the hands of the ETFs and institutions.
🚨 Small Bitcoin holders continue to sell into ETFs and $MSTR 🤷♂️ pic.twitter.com/hV42fDVlps
— HODL15Capital 🇺🇸 (@HODL15Capital) September 26, 2024
We see government pension funds, large institutions, wealthy investors and other big 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. Long story short, I see 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 bitcoin directly to the 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 in their future, and who may not currently have sufficient savings, to build wealth in a sovereign way by accumulating BTC and owning the keys to their coins. Instead, these coins are largely “locked up” in these ETFs, where those who buy them can only exchange their shares for US dollars and do not experience the benefits of the features that make Bitcoin so unique (e.g. the freedom to transact globally ). without the consent of a third party).
Based on this data, I fear that many of these smaller Bitcoin holders are letting a great opportunity to build wealth by holding BTC slip through their fingers. Furthermore, by not purchasing Bitcoin directly and holding it in-house, as opposed to buying shares of the ETFs, investors are missing out on what it really means to own censorship-resistant government money. Such a feeling often results in investors holding bitcoin for the long term, rather than selling in the short term based on fear.
The smart money knows exactly what opportunities lie here, and they don’t really care about the freedom aspects of Bitcoin. They simply fill their BTC bags into a vehicle that suits them better.
Cheap BTC doesn’t last forever. Major players will continue to scoop up huge amounts of shares from the ETFs as we reach new all-time highs and beyond. If there is one thing I want to say to you today: don’t sell your BTC to the corporations and hold the keys to your coins.