Recent weeks have seen notable changes in cryptocurrency investments. Data indicates that Bitcoin is losing interest from major investors, while Ethereum is receiving new inflows.
Investment Data on Bitcoin
In August, $301 million was pulled from Bitcoin investment products, according to CoinShares. In contrast, Ethereum saw nearly $4 billion in inflows, indicating a shift in investor preferences.
Whale Selling Activity
A key catalyst for these changes has been the actions of large holders. One sold 4,000 BTC to acquire nearly 97,000 ETH. Analysts from Arkham Intelligence noted that nine whales offloaded approximately $450 million worth of Bitcoin to switch to Ethereum. These actions suggest a preference for Ethereum among investment capital at this time.
ETP Statistics and Market Impact
Despite the weakening demand, exchange-traded products (ETPs) still control a significant slice of Bitcoin. They currently hold over 1.47 million BTC, which is 7% of the total supply. Major funds like BlackRock and Fidelity hold the largest amounts. Since December, global ETPs have added over 170,000 BTC, but the pace of accumulation appears to be slowing, exacerbated by gold's strength and Bitcoin's historical weakness in September.
Thus, the current situation in the cryptocurrency market points to a significant capital reallocation towards Ethereum, while Bitcoin faces challenges in attracting institutional investment.
