Small investors increase Bitcoin holdings amid ETF anticipation

Quick Take

Amid the ongoing interplay between the Securities and Exchange Commission (SEC) and firms proposing spot Bitcoin ETFs, a dynamic is taking shape in the Bitcoin market.

The timeline, pinning potential developments between Jan. 8-10, presents a scenario where retail investors are front-running institutions. This anticipation has likely contributed to Bitcoin’s price surge above $44,000 and potentially four consecutive positive months.

Plankton Address Count: (Source: Glassnode)
Plankton Address Count: (Source: Glassnode)

Remarkably, this period witnesses a spike in the number of addresses holding less than 1 Bitcoin, indicating that smaller investors are taking advantage of this opportunity. The number of ‘Plankton’ addresses (those holding less than 0.01 Bitcoin) has risen precipitously this year, with a 30-day change of over 1 million, adding up to 38.5 million addresses.

Meanwhile, ‘Shrimp’ addresses (those with less than 1 Bitcoin) crossed the 50 million mark, a significant increase of over 1.3 million in the last 30 days. These numbers paint a picture of small-scale investors strategically increasing their Bitcoin holdings in light of the ETF developments.

Shrimp Address Count: (Source: Glassnode)
Shrimp Address Count: (Source: Glassnode)

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Source: https://cryptoslate.com/insights/bitcoin-surges-past-44000-as-small-investors-increase-holdings-amid-etf-anticipation/