TL;DR
- Owen Gunden, an early holder, sold his entire 11,000 BTC holdings valued at $1.3 billion.
- The action occurs during the “most bearish” period of the cycle, with CryptoQuant’s Bull Score Index at 20/100.
- Institutional ownership of spot Bitcoin ETFs in the US surged to a record 40%.
Owen Gunden, one of the richest Bitcoin holders, liquidated all his BTC positions in a move that accentuates the general sentiment of retail investors. The transaction took place on Thursday; the whale, tagged by the blockchain data platform Arkham, transferred his last 2,499 Bitcoin, valued at $228 million, to the Kraken exchange.
Gunden’s sale totaled 11,000 Bitcoin, translating to $1.3 billion since mid-October. With this latest move, the millionaire completely closes his exposure to the digital asset.
The massive liquidation unfolded against a backdrop of concern about the end of the bull market. In the current cycle, Bitcoin’s market conditions have deteriorated to their “most bearish” level, with CryptoQuant’s Bull Score Index falling to 20/100. Gunden, known for being one of the pioneers in Bitcoin arbitrage on exchanges like the defunct Mt. Gox, decided on a complete withdrawal just as retail sentiment hits its lowest point.
The Institutional Divergence: ETFs as a New Haven
Despite clear signs of fear among retail investors and massive whale liquidations, the institutional scenario tells a different story. Institutional ownership of spot Bitcoin ETFs in the US continues to climb to new highs.
According to analyst Root, institutional ownership of these investment vehicles soared to 40% last Wednesday. This increase is significant, starting from the 27% recorded in the second quarter of 2024, when some 1,119 firms managed investments through ETFs.
The 40% figure is based on the latest 13-F filings and represents a “conservative estimate,” as only institutions managing over $100 million are required to file these reports. The increase in these holdings indicates that large institutions are maintaining their ETF shares, even in the face of large sales by other shareholders that have caused net outflows of $2.8 billion in November.
Whale liquidations and institutional Bitcoin ETFs highlight a profound power transition in the market. While early holders with large gains take profits amidst bearish sentiment, long-term institutional capital is quietly increasing its share through regulated vehicles. This shift suggests that control of Bitcoin’s supply is moving from individual hands to large asset managers, a structural change that could lay the groundwork for the next phase of the cycle.
