Bitcoin demand seems to be increasing in the case of custodial wallets. As per CryptoQuant’s CEO Ki Young Ju, the recent inclusion of 278,000 $BTC into the US spot ETF sector highlights a huge preference for custodial wallets among institutional players. He discussed the present ETF market scenario in recent social media posts.
Institutional Demand of Bitcoin Rises among Custodial Wallets in Comparison with Retail Wallets
Ki Young Ju mentioned that throughout the past year, the spot ETF market of the US added 278,000 $BTC. The retail investors reportedly accounted for eighty percent of the respective purchases. Nonetheless, big whale wallets accumulated a substantially huge volume, almost 67,000 $BTC, apart from mining pools and exchanges. The respective pattern indicates that the institutional players are notably preferring custodial wallets over straight ETF holdings.
In line with the data, a noteworthy spike in $BTC accumulation has taken place among the whale wallets. Several institutional investors seem to support the respective custodial solutions as a 3rd party manages their holdings. A potential reason behind this is the surge in regulatory safeguards and security that the above-mentioned custodial services deliver. While institutional demand is outcompeting retail demand, this trend points toward a likely shift in the market driven by institutions.
The Development Highlights the Need for Additional Granular Data for Analysts
Interestingly, the majority of the ETF wallets usually hold $BTC less than 1,000 in number. According to Ki Young Ju from CryptoQuant, this figure works as a dependable benchmark to assess custodial wallet trends. Although this offers valuable insights, there is a requirement for additional granular data for analysts in pursuit of comprehending the forces behind the respective inflows.
