Key facts: There were capital outflows in ETFs and BTC purchases were recorded in self-custody wallets. ETFs are used by institutional investors, as they are instruments regulated by the SEC. Trader Willy Woo analyzed the behavior of investors in bitcoin (BTC) spot ETFs in recent days, something that has impacted the price of the digital currency. In the ETFs, capital outflows were recorded in the order of $1.8 billion from ETFs in the last 4 days. For its part, the Bitcoin network received 1.1 billion dollars of total net flows. That is, funds that were directed towards self-custody wallets, as can be seen in the following image. At the top you can see the price of bitcoin. At the bottom, in light blue, is the total capital flow into BTC and in dark blue, just the flow into bitcoin ETFs.
Exits and entries of the Bitcoin network and ETFs. Source: Willy Woo. This means that bitcoin ETF traders They are selling to make profits, or exiting your investment because the price falls. While bitcoin hodlers are buying. Following those decisions, Woo says that those who operate with ETFs «are newbies.» It is understood that traders are not actually newbies because they are investors with large assets and, in general, have extensive experience in the market. But if They are acting like newbies in bitcoin trading, as they are showing ignorance of market cycles. It is well known that bitcoin tends to appreciate after the halving, an event that is scheduled to take place next month. So the best thing to do to profit—assuming historical patterns will repeat themselves—is to purchase these ETFs and wait for the digital currency to follow its usual course after the halving. Some analysts have predicted that the BTC price could reach $100,000 even before the halving, as expressed by Samson Mow. A follower of the social network X, whose pseudonym is Khurram, he questioned what was said by Woo, arguing that The analyst had also invested in the fund managed by BlackRock called (IBIT). “You invested in IBIT and posted about it, when we should be encouraging people to self-custody.” Woo answered that «not everyone should have self-custody [de sus bitcoins]». He gave the example of people like Joe Biden, president of the United States, or investor Peter Schiff, of whom «I wouldn't expect them to not lose their keys» if they had BTC in real life. By this he means that they are people who would probably not pay attention to the keys or private keys of their wallets if they invested in the digital currency. Therefore, to avoid these risks, individual investors and to a large extent institutional investors prefer to use ETFs as a financial vehicle, because they are instruments regulated by the United States Securities and Exchange Commission (SEC). Furthermore, Woo added that When trading with bitcoin on exchanges, there is no self-custody. Likewise, «when I switch between ETFs and public mining companies, I'm not a self-custodian,» he said. On the other hand, Woo also praise to bitcoiners whose assets are 0.1 and 1 BTC. He expressed this because those investors «stopped accumulating when the situation became critical and then resumed buying in the fall,» as the following graph shows.
Supplying bitcoin users with between 0.1 and 1 BTC. Source: Glassnode. That means that this group of investors was able to maintain its position and take advantage of the recent fall to acquire the digital asset. Let us remember that bitcoin reached its all-time high of $73,000 last week and In a matter of days its price fell to $61,000. Currently, it is trading above $63,000. As BitcoinDynamic has reported, corrections (bearish movements within a bullish macrotrend) They are common and even healthysince they can help moderate this rise and keep prices more aligned with the fundamental values perceived by the market.