Bitcoin Wallets Continues Declining Despite Growing ETF Interest, MicroStrategy Buys 850 More $BTC, Now Holding 190,000 BTC

In the wake of the SEC’s approval of 11 Spot ETFs just four weeks ago, the number of wallets holding Bitcoin continues to dwindle.

This trend is attributed to the prevailing fear, uncertainty, and doubt (FUD) among investors, alongside the increasing array of alternative investment options competing for attention.

📉 #Bitcoin‘s wallets (with greater than 0 coins) are still declining as #crypto nears 4 weeks since the #SEC‘s 11 Spot #ETF approvals. This can be attributed to crowd #FUD, and less interest in direct $BTC ownership due to other investment alternatives. https://t.co/tjnjELxGw1 pic.twitter.com/xRymU7C0ro

— Santiment (@santimentfeed) February 7, 2024

Recent data from Santiment highlights a significant decline in the number of wallets holding Bitcoin. Approximately 468.92k wallets no longer contain any coins, a notable shift compared to figures from January 21, 2024, just 16 days ago.

As of February 6th, Grayscale has reduced its Bitcoin holdings by 3,427 BTC, equivalent to $147 million. Meanwhile, eight ETFs collectively added 4,189 BTC, totaling $179.6 million.

Notably, iShares, under Blackrock, contributed 3,236 BTC amounting to $138.7 million to this increase.

Feb 6 Update:#Grayscale decreased 3,427 $BTC($147M).

8 ETFs added 4,189 $BTC($179.6M), of which #iShares(#Blackrock) added 3,236 $BTC($138.7M).https://t.co/B1uA4TqecY pic.twitter.com/gc51yOSWRL

— Lookonchain (@lookonchain) February 6, 2024

MicroStrategy Buys More 850 BTC, Now Holds 190,000 BTC

In addition to ETF activity, MicroStrategy remains an active participant in the Bitcoin market. Since December 27, 2023, the company has acquired an additional 850 BTC valued at $37 million, with an average purchase price of $43,686. 

Currently, MicroStrategy holds a substantial 190,000 BTC, valued at $8.15 billion. Impressively, the firm’s average buying price stands at $31,224 per BTC, solidifying its position as a holder of nearly 1% of the total Bitcoin supply.

With Bitcoin prices at their current levels, MicroStrategy’s accumulated profit from its Bitcoin holdings has surpassed $2.22 billion, underscoring the company’s strategic investment decisions in the cryptocurrency space.

MicroStrategy bought another 850 $BTC($37M) at $43,686 since Dec 27, 2023.#MicroStrategy currently holds 190K $BTC($8.15B), and the average buying price is $31,224.

At current prices, the profit has exceeded $2.22B!https://t.co/uUnWtzecii pic.twitter.com/Tgri7RIVw2

— Lookonchain (@lookonchain) February 7, 2024

As Bitcoin continues to capture the interest of institutional investors through ETFs and corporate acquisitions, the evolving landscape of Bitcoin ownership reflects dynamic shifts in market sentiment and investment strategies within the cryptocurrency ecosystem.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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