Despite recent price fluctuations, the Bitcoin (BTC) market continues to attract significant interest from large-scale investors. Data shows that whales have accumulated approximately 270,000 BTC in the past month. Experts note that this accumulation rate is at its highest level in the last 10 years.
Bloomberg Senior ETF Analyst Eric Balchunas stated that the most surprising development in the market was Goldman Sachs’ application for a Bitcoin “covered call” ETF. Balchunas described Goldman’s move as “a complete surprise,” adding that the bank decided to enter the game after seeing the success of its rival Morgan Stanley.
Designed especially for conservative investors, these new products are said to offer returns of up to 80%, although they may somewhat limit Bitcoin’s upside potential.
Contrary to popular belief, it turns out traditional investors are not the “weak hand” in Bitcoin ETFs. Balchunas noted that despite sharp 50% pullbacks in Bitcoin price, ETF outflows remained limited. According to the analyst, this proves that traditional investors are beginning to see Bitcoin as a long-term portfolio component rather than a short-term speculative tool.
Another important point highlighted is that exchange reserves have fallen to their lowest level since 2017. In an environment where supply is tightening and ETFs hold approximately 7-9% of the circulating Bitcoin supply, there is a debate about whether increased demand could create a “permanent supply shock”.
Balchunas, in his statements to individual investors, argued that constantly monitoring the market and making trades is costly and tiring, and that the most successful strategy is the “buy and hold” (HODL) method.
Highlighting Bitcoin’s historical ability to hit new records after every dip, the analyst stated that the market is currently in a period of “inch-by-inch progress.”
*This is not investment advice.
