Individual Bitcoin investors' daily transfers to Binance 'lowest ever'... "Impact of ETF proliferation"

The amount of deposits that individual Bitcoin (BTC) investors send to exchanges has fallen to record-low levels. Although Bitcoin has reached this year's highs, the share of direct trading by individual investors has decreased, indicating a change in how market participants engage.

On the 9th (local time), crypto-focused media Cointelegraph, citing CryptoQuant data, reported that "inflows to Binance from addresses holding less than 1 BTC, the so-called 'shrimp wallets', have plunged since the start of the year."

CryptoQuant analyst Darkfost said, "During the 2022 bear market, an average of 2675 BTC flowed into Binance per day, but it is currently around 411 BTC," and added, "It appears to be a structural decline rather than a simple adjustment."

The spread of U.S. spot Bitcoin ETFs has been pointed to as the reason for the slowdown in individual investors' activity. Darkfost analyzed that "ETFs allow investment in Bitcoin without considering wallet management or custody risk, significantly changing the way individual investors participate in the market."

The outlet reported that "volatility in the ETF market continues, with about $2.3 billion in net outflows from BlackRock's iShares Bitcoin Trust (IBIT) last month."