Can Shrimps Trigger the Approval of a Spot Bitcoin ETF?

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• Following BlackRock’s application for a spot Bitcoin ETF, the industry has seen a series of applications submitted to the U.S. Securities and Exchange Commission (SEC) for ETF approval.
• Data from the on-chain analytics platform Santiment reveals a notable increase in smaller wallets (shrimps) holding less than 1 BTC.
• Seyffart sheds light on the upcoming deadline for spot Bitcoin ETFs, including Franklin Templeton’s application.

Shrimps supporting the rise in Bitcoin price reveal a remarkable increase: The current situation in Bitcoin wallet groups!

Shrimps Continue to Accumulate Bitcoin

Bitcoin’s price has displayed a bullish trend since last month, aiming to break $37,500. This surge appears to be driven by speculation about the approval of a spot Bitcoin ETF, following BlackRock’s application. After BlackRock’s application for a spot Bitcoin ETF, the industry has witnessed a flurry of applications for ETF approval submitted to the U.S. Securities and Exchange Commission (SEC).

While none of them have been approved yet, FOMO has circulated in the market, propelling Bitcoin’s network activity like never before in just a few months. The current Bitcoin price movement indicates that whales alone are not moving the market.

Whales have traditionally been classified as manipulators to change Bitcoin price fluctuations. However, the network has also recorded a series of smaller wallets contributing to the increase in Bitcoin prices.

Data from the on-chain analytics platform Santiment shows a significant increase in smaller wallets (shrimps) holding less than 1 BTC. The increase in these smaller wallets indicates the growing participation of retail investors and potentially signals an expansion of Bitcoin ownership.

Despite the increase in smaller wallets, there has been a leveling off in the growth of the 1-100 BTC range. This range typically represents a mix of retail and institutional investors, indicating a stabilization in wallet activity.

The analysis also suggests that larger institutional or high net worth investors representing the 100+ BTC level could engage in profit-taking activities, potentially triggering an upward movement in Bitcoin prices.

FOMO Surrounding Spot Bitcoin ETF Approval

As companies submit more applications to the SEC, the chances of approval for a spot Bitcoin ETF seem to be diminishing. On November 16th, WisdomTree, a global exchange-traded fund (ETF) provider, filed a revised Form S-1 draft for a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).

According to the updated draft, WisdomTree’s spot Bitcoin ETF will trade under the ticker symbol BTCW and Coinbase Custody Trust will serve as the custody holding all of the fund’s Bitcoins. In response to this, Bloomberg ETF analyst James Seyffart mentioned on his Twitter account, “nothing major.” Seyffart stated, “Everyone needs to do the same to issue ETFs.”

Additionally, Seyffart shed light on the upcoming deadline for spot Bitcoin ETFs, including Franklin Templeton’s application. The BTC price is currently trading at $36,350, experiencing a decrease of over 2% in the last 24 hours.