The surge in Bitcoin‘s value, scaling beyond $73,000, has been a boon for wealth creation in the cryptocurrency sphere, generating around 1,500 new millionaires every day. As Bitcoin’s price soared to a historic peak, reaching $73,709 on March 13th, this trend has been propelled by substantial institutional investments and the recent introduction of spot Bitcoin ETFs, which have seen record inflows.
Spot Bitcoin ETFs Stoke Market Enthusiasm
The market has seen a significant injection of institutional funds into Bitcoin, particularly following the endorsement of spot Bitcoin ETFs. Investors are increasingly gravitating towards these ETFs, preferring them over futures-based Bitcoin investment products. Notably, spot Bitcoin ETFs now represent a dominating 90% share of the daily trading volume in ETFs tied to Bitcoin.
The Wealth Effect of Bitcoin’s Rally
Research from Kaiko indicates that the uptick in Bitcoin’s value, backed by U.S. spot Bitcoin ETF funds, is generating an influx of millionaire wallets at an impressive rate. Despite the surge, the current number of wallets housing between $1 and $10 million in Bitcoin is significantly less than during the 2021 boom, suggesting a more tempered pace of growth.
The study suggests that the slower rate of millionaire creation may be due to the saturation of new capital inflows, profit-taking by Bitcoin whales, and a trend towards storing assets with custodial services rather than personal wallets. This conservative approach by whales signals a cautious optimism in the market.
As Bitcoin’s adoption and perception as a valuable store of wealth and investment asset persist, there is a clear and steady increase in the total Bitcoin addresses that hold notable wealth, hinting at an enduring trend of wealth accumulation within the cryptocurrency ecosystem.