Owen Gunden, one of the richest early holders of Bitcoin, has sold off his entire BTC position as fear spreads across the retail market. Gunden’s wallet, identified by the blockchain data platform Arkham, transferred his final 2,499 Bitcoin, worth $228 million, to the cryptocurrency exchange Kraken on Thursday. In total, Gunden has sold 11,000 Bitcoin worth about $1.3 billion since late October, completely emptying his Bitcoin wallet.
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These major transactions are happening while the overall Bitcoin market condition has dropped to its “most bearish” level during the current cycle. The market’s Bull Score Index has declined to 20 out of 100, which signals extreme bearish sentiment.
Institutional Ownership Surges Despite ETF Outflows
While early individual investors like Gunden are selling, major financial firms are quietly taking over the market. Institutional ownership of U.S. spot Bitcoin ETFs has surged to 40%, according to Bitcoin analyst Root. This marks a significant jump from the 27% institutional ownership recorded in the second quarter of 2024. This 40% is likely a low estimate, as it only includes firms managing over $100 million.
The growing figures indicate that these institutions are holding onto their shares. This is happening despite large-scale selling by other ETF shareholders, which has caused $2.8 billion in total outflows so far this month.
The Transfer of Wealth Tightens Institutional Grip
Gunden’s sell-off highlights a major transfer of wealth and ownership in the Bitcoin ecosystem. Gunden was a famous arbitrage trader on exchanges like the now-closed Mt. Gox, building his fortune early on.
Now, as the market turns bearish, the wealth is shifting from these original investors to institutional participants. This trend of institutions buying up ETF shares and early holders selling off their direct Bitcoin suggests that while the current market is fearful, big financial firms see a long-term opportunity and are quickly increasing their control over the asset. This move by institutions is happening even as the market faces the risk of the bull cycle ending.
At the time of writing, Bitcoin is sitting at $91,591.92.
