Whale entities have seen their aggregate balance decline throughout #Bitcoins history. The chart below reinforces this, with #Whale entities accounting for 46% of the total supply, down from 63% in early 2021.

It is important to note that here, Whale entities will include exchanges, as well as large centralized holdings such as #ETF products, #GBTC, #WBTC, and corporate holdings like #Microstrategy.

Leading up to the approval of spot #ETFs in January, speculation surged, leading Long-Term Holders (#LTH) to either cash out for profit or reallocate their holdings into new #ETF products. This resulted in a significant decrease in LTH supply balance by approximately 299.5K #BTC since November, from a peak of 14.996M BTC. Notably, analysis of #GBTC flows, with around 661k BTC inflow and 151.5K #BTC outflows in 2021, suggests that remaining #LTH supply, totaling 148K #BTC, is being spent by investors. This trend aligns with previous research indicating LTHs begin distributing their holdings as the market approaches all-time high prices.

As prices rise, Long-Term Holders (LTHs) are selling their holdings. #LTH Supply has decreased by -900K #BTC since December 2023, with #GBTC trust outflows accounting for about one third (-286K #BTC). Meanwhile, Short-Term Holder Supply has increased by +1.121M #BTC, absorbing #LTH selling pressure and acquiring 121K #BTC from exchanges.

The new US Spot #ETFs have become a dominant force in the market. These new instruments introduced a significant source of new demand into the market, more than offsetting the daily issuance, as well as sell-side pressure from #GBTC and existing holders.

Comparing spot trade volumes 🟧 and ETF trade volumes 🟦, there is strong correlation between these markets, with ETFs trading around 30% of the size of global spot markets. We can also see the seasonality impact of weekends, where ETF markets are closed, and spot trade volumes are notably lower.