There is a notable shift among Bitcoin holders. Following the SEC’s approval of 11 spot ETFs, the number of non-0 BTC wallets was at its highest on January 20th at 52.95 million. This is credited to the increased interest in holders having exposure through ETFs rather than owning the actual token. While this is a positive indicator as it reflects investors’ preference for crypto assets, Santiment noted a dip in these holders’ cohorts. 30 days into the ETF nod, 729.4K fewer Bitcoin wallets are now holding more than 0 BTC.
On one side, the count of Bitcoin owners shows no significant change, while those holding the leading alternative cryptocurrencies Ethereum [ETH] and Tether [USDT] have reached their highest points at 114.95 million and 5.22 million, respectively. However, for any future assets, a decrease in the number of active wallets is expected, as they might prefer the investment route instead of holding the asset directly.
For any future asset with ETFs, there would be an implied drop in active wallets on their respective networks.
The other day, the Bitcoin ETF hit its highest-ever daily volume and inflows, according to an earlier report by Santiment. The 7 largest ETFs, including FBTC, BITB, HODL, ARKB, and BTCO, raked in a combined volume of roughly $7 billion.
For the record, BTC ETFs can hold both actual Bitcoin and futures contracts. They allow investors to invest in the price without the need to directly buy, store, and secure the digital assets themselves. High ETF activity shows market interest but doesn’t impact BTC supply & demand directly.
Speculative Demand For Bitcoin Surge
Simultaneously, the coin’s open interest on centralized exchanges has reached unprecedented levels, crossing over $10 billion for the first time since July 2022. While money entering into digital assets is no surprise, the rapid surge in the speculation of derivatives is noteworthy. An increase in OI means the investors are taking more risks with their profits, a clear signal that the crowd euphoria has not subsided.
Besides BTC, other top climbers to watch out for are Ethereum [ETH], which has $5.59 billion in open interest. Solana’s SOL: $1.62 billion in open interest; and Chainlink’s LINK: $549 million in open interest.