Retail investor demand for Bitcoin has not disappeared; it has shifted to spot Bitcoin ETFs. Data reveals that retail investors are the driving force behind the significant inflows into these new, regulated investment products, preferring their ease of access and security over direct ownership on crypto exchanges.
According to Glassnode, a 'super-majority' of Bitcoin holders are holding $1.2T in unrealized profits. The trend indicates a strong preference for HODLing, as the current price is not considered compelling enough for significant profit-taking.
As concerns rise about sovereign debt sustainability and inflation, some investors are turning to Bitcoin as an alternative to sovereign bonds. Bitcoin offers advantages like limited supply and decentralization, while sovereign bonds are traditionally considered safe havens.
