Bitcoin Whales Increased Holdings During Crypto Market Mayhem, but ETF Investors Didn't Buy the Dip

Though posting net outflows on Monday, the spot ETF action did show some positive surprises, Bloomberg ETF analyst Eric Balchunas noted.

Bitcoin (BTC) prices roller-coastered (mostly down) as prices crashed through the weekend to hit $49,000 early Monday, before modestly rebounding to trade around $56,000 in the morning U.S. hours – sparking contrasting reactions from different classes of holders.

Bitcoin whales – large asset holders – used the opportunity of lower prices to buy, while smaller asset holders sold in the panic, according to data from blockchain analytics firm IntoTheBlock.

"Crypto wallets holding between 1,000 to 10,000 BTC, roughly $56 million to $560 million at current prices, demonstrated confidence during the recent dip, consistently increasing their holdings as prices fell," IntoTheBlock analysts said.

"On the other hand, wallets with less than 1 BTC showed weak hands, with the most substantial decrease in holdings during yesterday's market downturn," they added.

U.S.-listed spot bitcoin exchange-traded funds (ETFs) saw $168 million in net outflows on Monday, according to data compiled by Farside Investors. Outflows were seen only in Grayscale's GBTC, Fidelity's FBTC and 21Shares/Ark Invest's ARKB, while other rivals saw very small inflows or were flat.

Read more: Ethereum ETFs Scored $49M Inflows as ETH Plunged

However, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, highlighted the positives, noting that the outflows were only 0.3% of the total assets under management in the ETFs. Moreover, he said, the largest of the spot funds – BlackRock's $18 billion IBIT – saw no net outflows.

"That's peanuts," Balchunas said, referring to the overall level of flows yesterday. "That said, it's one day, I could see some more outflows this week. I was thinking a couple billion would leave. So far though, looking much stronger than that."

The above is the detailed content of Bitcoin Whales Increased Holdings During Crypto Market Mayhem, but ETF Investors Didn't Buy the Dip. For more information, please follow other related articles on the PHP Chinese website!