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Tons of Small Wallets Fueling Bitcoin Price

Bitcoin price has been experiencing a significant uptrend since last month, breaking the $37.5K mark. This surge is speculated to be driven by the anticipation of a spot Bitcoin ETF approval. Following BlackRock’s spot Bitcoin ETF filing, there has been a surge in applications submitted to the US Securities and Exchange Commission (SEC) for ETF approval.

Although no approvals have been granted yet, the market has witnessed a frenzy due to the fear of missing out (FOMO), resulting in increased network activity for Bitcoin. This recent movement suggests that the market is not solely influenced by whales but also by smaller retail investors.

On-chain analytics platform Santiment has reported a significant increase in the number of new smaller wallets (referred to as “shrimp” wallets) holding less than 1 BTC. This influx of smaller wallets indicates a rise in retail investor participation and a potentially wider base of Bitcoin ownership.

Contrary to the surge in smaller wallets, there has been a flattening in growth for wallets holding 1-100 BTC, which typically represent a mix of retail and institutional investors.

Additionally, analysis suggests that larger institutional or high-net-worth investors holding 100+ BTC may be engaged in profit-taking activities, which could contribute to the upward movement of Bitcoin price.

FOMO Surrounding Spot Bitcoin ETF Approval

As more firms submit proposals to the SEC, the likelihood of a spot Bitcoin ETF approval is becoming increasingly uncertain. WisdomTree, a global ETF provider, recently submitted an amended Form S-1 for a spot Bitcoin ETF with the SEC. According to the updated prospectus, the ETF will trade under the ticker code BTCW, with Coinbase Custody Trust serving as the custodian for all the trust’s Bitcoin holdings.

Bloomberg ETF analyst James Seyffart stated that the process of issuing an ETF requires the same steps for all applicants. He also mentioned the approaching deadline for other spot Bitcoin ETF filings, including Franklin Templeton’s.

The current price of BTC is $36,364, experiencing a decrease of more than 2% in the last 24 hours due to Friday’s expiry and the ETHBTC ratio turning green after the announcement of a BlackRock Ethereum ETF.