The approval of Bitcoin ETF fails to boost BTC activity.

The approval of Bitcoin ETFs in the United States this year was seen as a major step towards the mainstream adoption of crypto. Yet, recent data indicates a decrease in overall Bitcoin wallet activity. This raises questions about the tangible and lasting impact of these new financial products.

Bitcoin ETFs, Initial Enthusiasm Fading

According to Santiment statistics, the number of crypto wallets holding Bitcoin has been steadily decreasing ever since the approval of Bitcoin ETFs about four weeks ago. This downward trend suggests that interest in holding Bitcoin directly may be eroding, potentially due to fear, or perhaps uncertainty and doubt weighing on investors.

A more detailed analysis by IntoTheBlock corroborates this.
It highlights a significant reduction in the number of daily active BTC addresses as well as newly created addresses. These two indicators reflect a decreased engagement and interest from Bitcoin network users since the introduction of ETFs.

Diverging Interpretations of the Crypto Market

The interpretations of these data showing a decline vary within the crypto industry. Some leading figures, such as Anthony Scaramucci, refuse to succumb to the prevailing pessimism and point to the resounding success of the Bitcoin ETF launches, which generated some $5 billion in initial investment. They also question the success criteria put forward by skeptics.

Nonetheless, influential traditional financial institutions like LPL Financial prefer to take a cautious and measured stance. They believe that it is still too early to determine whether this product will achieve lasting success among investors. This divergence of opinion reflects a shared sentiment in the bitcoin market.

Strategic Movements Among Bitcoin Miners

Beyond the behavior of individual investors, the launch of the first Bitcoin ETFs has also caused notable shifts among crypto miners. These miners secure Bitcoin network transactions in exchange for BTC rewards.

According to an analysis by Bitfinex Alpha, an unprecedented volume of over one billion dollars’ worth of Bitcoin moved from miners’ wallets to exchanges within 48 hours following the start of ETF trading, a situation not seen in 6 years.

The arrival of Bitcoin ETFs was highly anticipated by the crypto industry as a catalyst for mainstream adoption. However, their tangible impact on wallet activity seems limited for the time being. This does not undermine their symbolic contribution in terms of legitimization, but underscores the complexity of understanding their real influence on a volatile market driven by multiple factors.