Whales Boost Bitcoin Holdings as Retail Sells Off and ETF Inflows Surge

Over the past several weeks, large Bitcoin holders have been quietly increasing their positions, according to data from Santiment.

Despite recent market chop and retail investors trimming their holdings, large Bitcoin (BTC) appear to be quietly increasing their positions, according to on-chain data.

Investors holding wallets containing between 10 and 10,000 BTC—often referred to as “whales” and “sharks”—have collectively accrued over $7.8 billion worth of Bitcoin during this period.

This surge in activity, which seems to be unfolding slowly yet steadily over the past several weeks, is interesting considering that smaller retail investors have actually been trimming their holdings.

Wallets holding less than 0.1 BTC have shed nearly 290 BTC, hinting at either panic selling or disinterest during the recent market chop.

Chart: Santiment

Optimism Among Whales and Sharks

The big players' persistent accumulation is a testament to their growing optimism.

Having added more than 81,000 BTC—an increase of about 0.61%—these influential wallets, which are often seen as a barometer of broader market health, are signaling confidence in Bitcoin’s longer-term potential.

This optimism is further highlighted by the fact that these wallets have been accumulating despite recent market fluctuations, suggesting that they are focused on the bigger picture rather than short-term price movements.

The activity of whales and sharks could also be a factor in the recent price strength of Bitcoin, which has managed to stay afloat despite the turbulent market conditions.

The apex coin is currently trading above the $70,000 mark, having slid from highs of over $73,000 earlier this week.

While it is still early to say whether Bitcoin will be able to break out of the trading range that it has been stuck in for several months now, the big players' persistent optimism and the fact that institutional capital continues to flow into Bitcoin could bode well for the apex coin's chances of making a move higher.

ETF Inflows Point to Institutional Interest

In addition to direct accumulation, institutional interest also seems to be climbing.

Since mid-April, Bitcoin ETFs have seen significant capital inflows. More than $5.1 billion has poured into these investment vehicles since April 16, contributing to market momentum.

This massive influx is testament to the growing institutional appetite for Bitcoin, which is presenting itself as a viable asset class for diversified portfolios.

As reported by Inc Magazine, this marks a stark contrast to the trends observed during the 2022 bull market. Back then, the narrative was focused on retail investors pouring money into Bitcoin, while institutions were largely absent.

Now, the tables have turned, with major institutions actively participating in the crypto markets and making substantial investments in Bitcoin.

This shift is a natural progression as institutions are constantly seeking outperforming asset classes to generate returns for their investors.

With Bitcoin's performance over the past several years and its status as the leading cryptocurrency, it is no surprise that it has become a primary target for institutional capital allocation.