This surge in accumulation was particularly noticeable after BlackRock (NYSE:BLK), the world’s largest asset manager, filed to launch a spot Bitcoin exchange-traded fund (ETF) in the United States. The move by BlackRock seems to have sparked renewed interest among large investors, with several other financial powerhouses also actively exploring ways to provide access to Bitcoin.
The market has responded positively to these developments. As per CoinGecko’s data, the price of Bitcoin rose by 2.5% within 24 hours on Thursday. Ether (ETH), the second-largest cryptocurrency by market capitalization, also charted gains of approximately 4%.
Notably, it’s not just Bitcoin that’s seeing increased accumulation. Tether (USDT), a popular stablecoin, is also witnessing a similar trend. Wallets holding between 100,000 and 10 million USDT tokens have been increasing their holdings and now control around $15 billion worth of the stablecoin, marking a six-week high.
These large investors started purchasing Bitcoin en masse in June, shortly after BlackRock announced its intention to introduce a spot Bitcoin ETF in the States. They bought over $2 billion worth of the asset between June 17 and July 10. Additionally, these investors were also active last month when the crypto market experienced a significant correction. They purchased more than 11,600 BTC between August 17 and August 25.
This accumulation of Bitcoin and Tether by large investors is generally viewed as a bullish sign for the market. It indicates high levels of confidence and suggests that these investors anticipate future price increases. However, the market’s reaction to these developments will continue to be closely monitored.
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Source: Cryptocurrency - investing.com
