What We're Reading: HODL15Capital

For the past few weeks I have been keeping up with HODL15Capital on X, who has done a tremendous job at posting some of the quickest incoming market

Nikolaus is keeping a close eye on the U.S. spot Bitcoin ETFs, and recently he has posted two charts in particular that have caught his attention.

Nine months have passed since the SEC approved these ETFs for trading, and during eight of those months, the ETFs have seen large inflows. Since their launch, these ETFs have seen inflows of 312,488 BTC, while miners have only created 169,942 new bitcoin.

These ETFs have seen the fastest growth in history, as BlackRock CEO Larry Fink has stated, and there are no signs of this slowing down, especially as we enter a period of time that has been historically bullish for Bitcoin.

These ETFs are quickly gobbling up all the available BTC, leading many to wonder who could possibly be selling at this time. According to HODL15Capital, it appears to be smaller BTC holders, who are selling directly into the hands of the ETFs and institutions.

We're seeing state pension funds, large institutions, wealthy investors and other major players buying and holding shares of these ETFs. Even ETF issuers like BlackRock are buying shares of its own Bitcoin ETF for their other funds. In short, I'm seeing smart money pouring into this asset class and, while that is great for the price of BTC, it pains me to watch smaller holders sell their bitcoin directly to the institutions.

Over the long term, holding Bitcoin has proven to be one of the best ways to build wealth. This is a real chance for those interested in investing for their future, who may not currently have proper savings, to start building up wealth in a sovereign way by accumulating BTC and holding the keys to their coins. Instead, these coins are being mostly "locked up" in these ETFs, where those who buy them can only redeem their shares for US dollars and don't experience the benefits of the attributes that make bitcoin so unique (e.g, freedom to transact globally without permission from a third party).

Based on this data, I fear many of these smaller bitcoin holders are letting a great opportunity to build wealth via holding BTC slip through their fingers. Also, buy not buying bitcoin directly and holding it in self-custody, as opposed to purchasing shares of the ETFs, investors are missing out on what it truly means to own censorship resistant sovereign money. Such a feeling often has the effect of making investors hold bitcoin for the long-term as opposed selling in the short-term based on fear.

The smart money knows exactly what opportunity is here, and they don't care too much about the freedom aspects of Bitcoin. They're just filling their BTC bags in a vehicle that suits them better.

Cheap BTC does not last forever. Major players will continue scooping up huge swaths of shares of the ETFs as we hit new all time highs and beyond. If there's one thing I leave you with today: Don't sell your BTC to the corporations, and hold the keys to your coins.