Bitcoin's Explosive Adoption Unleashes a New Wave of Whales!

As Bitcoin reaches dizzying heights, surpassing its previous all-time high, a surprising trend is emerging. Indeed, the number of new millionaire wallets created daily remains above the levels observed during the last bullish cycle. However, this situation may simply reflect a more measured approach on the part of seasoned investors. Moreover, the emergence of Bitcoin ETFs has undoubtedly contributed to this phenomenon, with investors perhaps preferring this indirect route.

The Measured Rise of Bitcoin Whales

Despite the price surge propelling Bitcoin beyond $72,000, whales appear to be adopting a cautious approach. According to research from Kaiko, only 1,500 new millionaire wallets are created daily. This means less than half the number recorded during the previous peak in November 2021. At that time, more than 4,000 wallets were crossing the million-dollar threshold per day, while another 2,000 wallets were reaching $10 million. In contrast, the current figures are similar to those of July 2022, when Bitcoin fell below $20,000.

Nevertheless, this apparent restraint could be explained by the gradual influx of capital. Indeed, in 2021 a wave of investors rushed to the market, driven by the surrounding euphoria. But currently, whales seem to prefer a more thoughtful approach. They may be waiting to see if the current gains are sustainable before investing massively. Moreover, some large investors might also choose to take their profits as Bitcoin establishes new records.

The Impact of Bitcoin ETFs

In addition, the emergence of Bitcoin ETFs could also explain the relative sluggishness of new millionaire wallets. Since their launch in January, nine U.S. ETFs have already accumulated more than $28 billion in Bitcoin. However, rather than holding the assets directly, investors in these ETFs own shares. Thus, their indirect holdings in Bitcoin are not reflected in the whale wallet data.

 Another factor that may explain this phenomenon is the increasing storage of Bitcoin holdings with regulated custodians. Coinbase and BitGo, which are among the main custodians of Bitcoin ETFs, are experiencing growing popularity. Opting for more secure and regulation-compliant custody solutions, many investors are now moving away from personal wallets. They prefer to focus on institutional custodians. This trend thus partially obscures the true extent of the new wave of wealthy Bitcoin holders.

While modest in appearance, the current adoption of Bitcoin reflects a wise and enduring approach. Seasoned investors seem to wait for the permanence of gains before committing fully. At the same time, the rise of Bitcoin ETFs indirectly captures substantial capital. Therefore, despite half-hearted figures, a new generation of savvy investors is inexorably fueling the growing adoption of BTC.