The rise of Bitcoin ETFs has been a hot topic in the financial world, with HODL15Capital on X providing real-time market data that has caught the attention of many investors. These ETFs have seen unprecedented growth since their approval by the SEC nine months ago, with inflows far exceeding new bitcoin creation by miners.
The success of these ETFs has attracted a diverse range of investors, from state pension funds to large institutions and wealthy individuals. Even ETF issuers like BlackRock are getting in on the action, buying shares of their own Bitcoin ETF for their other funds. While this influx of institutional money is driving up the price of BTC, it’s also causing smaller holders to sell their bitcoin directly to these institutions.
This trend is concerning, as holding bitcoin long-term has proven to be a lucrative investment strategy. By selling their bitcoin to institutions instead of holding it themselves, smaller holders are missing out on the opportunity to build wealth in a sovereign way. Additionally, by purchasing shares of ETFs instead of holding bitcoin in self-custody, investors are forfeiting the benefits of owning censorship-resistant sovereign money.
The smart money understands the potential of Bitcoin as an asset class, but they are more focused on accumulating as much BTC as possible rather than the freedom it provides. As the price of BTC continues to climb, major players will continue to buy up shares of ETFs, leaving smaller holders at a disadvantage.
In conclusion, it’s important for investors to hold onto their bitcoin and retain control of their coins. Selling to institutions may provide short-term gains, but the long-term benefits of holding bitcoin in self-custody far outweigh the convenience of ETFs. As the market continues to evolve, it’s crucial for investors to prioritize financial sovereignty and security in their investment strategies.