Mass adoption of Bitcoin is giving birth to a special generation of whales!

Wed March 13, 2024 ▪
min reading ▪ acc
Eddie S.

As Bitcoin reaches dizzying heights and surpasses its all-time high, a surprising trend is emerging. The number of new millionaire portfolios created daily remains above the levels seen during the last bull cycle. However, this situation could simply reflect a more measured approach on the part of seasoned investors. Additionally, the emergence of Bitcoin ETFs has likely contributed to this phenomenon, with investors possibly preferring this indirect route.

Bitcoin whales

Measured Rise of Bitcoin Whales

Despite the price surge that has pushed bitcoin above $72,000, whales appear to be taking a cautious approach. According to Kaiko research, only 1,500 new millionaire wallets are created daily. This represents less than half the number recorded during the previous peak in November 2021. At that time, more than 4,000 wallets crossed the million dollar mark per day. While 2,000 other portfolios reached $10 million. On the other hand, the current numbers are similar to those of July 2022, when Bitcoin fell below $20,000.

However, this apparent restraint could be explained by the gradual inflow of capital. In 2021, a wave of investors really burst into the market, driven by the surrounding euphoria. For now, however, the whales seem to be favoring a more thoughtful approach this time around. They may wait to see if current profits are sustainable before making a massive investment. In addition, some large investors could decide to take profits as Bitcoin sets new records.

Impact of Bitcoin ETFs

In addition, the emergence of Bitcoin ETFs could also explain the relative slowness of new millionaire portfolios. Since launching in January, nine US ETFs have amassed more than $28 billion in bitcoin. However, rather than directly owning the assets, investors in these ETFs own shares. So their indirect bitcoin holdings are not reflected in whale wallet data.

Another factor that may explain this phenomenon is the increasing storage of bitcoins by regulated custodians. Coinbase and BitGo, which are among the main managers of Bitcoin ETFs, are experiencing increasing popularity. Many investors are now opting for more secure, compliant custody solutions and are moving away from personal wallets. They prefer to focus on institutional depositories. This trend thus helps to partially obscure the true extent of the new wave of wealthy Bitcoin holders.

Although modest in appearance, the current adoption of Bitcoin reflects a wise and sustainable approach. Experienced investors seem to be waiting for gains to persist before fully committing. At the same time, the rise of Bitcoin ETFs indirectly raises significant capital. So, despite the mixed data, a new generation of informed investors is relentlessly supporting the growing adoption of BTC.

Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.

Eddie S avatar

Eddie S.

The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.


The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

Leave a Comment