Bitcoin Holds Steady at $78,000 as Institutional Demand and Whale Activity Surge
Bitcoin's recent rally has been supported by renewed institutional demand and increased activity among large Bitcoin holders, commonly known as whales. According to Eric Balchunas, Bloomberg Senior ETF Analyst, BlackRock's Bitcoin ETF, IBIT, is attracting interest from large Bitcoin holders through in-kind swaps.
BlackRock has processed about $5 billion in Bitcoin-to-ETF swaps, with the minimum transaction size reduced to $1 million, making the mechanism accessible to whales and larger institutional clients. This in-kind structure allows eligible Bitcoin holders to defer recognition of capital gains rather than selling their Bitcoin for cash before purchasing ETF shares.
The total net asset value of the Bitcoin ETFs has climbed to $99.05 billion, representing approximately 6.31% of Bitcoin's total market capitalization. The combination of sustained ETF inflows and increased participation from large holders could provide further support for Bitcoin's recovery.