What we read: HODL15Capital
Over the past few weeks, I’ve been following HODL15Capital on Recently, there were two charts in particular he posted that caught my attention.
Nine months ago, the Securities and Exchange Commission approved spot bitcoin ETFs for trading, and since then, the ETFs have seen huge inflows during eight of those nine months. Since their inception, these ETFs have seen… Inflows of 312,488 BTC while miners created only 169,942 new BTC.
Number of Bitcoins purchased by 🇺🇸 #Bitcoin ETFs every month👇$ go $FBTC $GBTC $ARKB $BITB $HODL $BRRR $EZBC $BTCW pic.twitter.com/mpeurOCUCR
— HODL15Capital 🇺🇸 (@HODL15Capital) October 1, 2024
These ETFs were the fastest-growing ETFs in history, like BlackRock CEO Larry Fink malewith no real signs of slowing down, especially as we head into what has been a historically bullish time period for Bitcoin.
These ETFs are gobbling up all the available Bitcoin leaving many people wondering: who could sell now? According to HODL15Capital, smaller Bitcoin holders appear to be selling directly into the hands of ETFs and institutions.
🚨 Small Bitcoin holders continue to sell to ETFs and $MSTR 🤷♂️ pic.twitter.com/hV42fDVlps
— HODL15Capital 🇺🇸 (@HODL15Capital) September 26, 2024
We are seeing government 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 Bitcoin ETF for their other funds. In short, I see smart money flowing into this asset class, and while this is great for the BTC price, it pains me to watch smaller holders selling their Bitcoin directly to institutions.
Holding Bitcoin 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 may not currently have adequate savings, to start building wealth in a sovereign way by accumulating Bitcoin and holding the keys to their coins. Instead, these currencies are mostly “locked” in these ETFs, where those who buy them can only redeem their shares for US dollars and do not enjoy the benefits of the attributes that make Bitcoin unique (e.g., freedom to transact globally). without permission from a third party).
Based on this data, I fear that many of these small Bitcoin holders are missing out on a great opportunity to build wealth by holding Bitcoin through their fingers. Also, do not buy Bitcoin directly and keep it 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 making investors hold Bitcoin for the long term rather than sell short term based on fear.
The smart money knows exactly what the opportunities are here, and they don’t care much about the freedom aspects of Bitcoin. They just fill their Bitcoin bags into a car that suits them best.
Cheap Bitcoin doesn’t last forever. Major players will continue to accumulate large swaths of ETF shares as we reach all-time highs and beyond. If there’s one thing I leave you with today: don’t sell your Bitcoin to companies, keep the keys to your coins.
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