Amid a wave of panic selling by retail investors, early Bitcoin adopter Owen Gunden has liquidated his entire $1.3 billion Bitcoin position within a month, while institutional ownership of Bitcoin ETFs has surged to a record 40%.
On Thursday, the Arkham-tracked wallet linked to Gunden transferred its final batch of 2,499 Bitcoin (worth $228 million) to crypto exchange Kraken. Since October 21, the wallet has sold approximately 11,000 Bitcoin, completely emptying its holdings.
This sell-off coincides with extreme market pessimism. CryptoQuant data shows Bitcoin market conditions have deteriorated to the "most bearish" levels of this cycle, with its Bull-Bear Index plunging to 20/100 - deep in negative territory. Bitcoin ETFs have seen $2.8 billion in outflows so far in November.
In stark contrast, institutional investors continue accumulating. Latest 13-F filings reveal institutional ownership of U.S. spot Bitcoin ETFs has jumped from 27% in Q2 2024 to 40% despite retail panic.
"Original Whale" Exits Completely
Gunden ranks among the wealthiest early Bitcoin holders. Arkham's crypto rich list estimates his net worth at $561 million, placing him eighth in the crypto sphere.
A former early Bitcoin arbitrage trader active on platforms including Tradehill and the defunct Mt. Gox, Gunden accumulated his on-chain wealth through trading tens of thousands of Bitcoin before Mt. Gox's 2014 collapse.
The liquidation process began October 21 and concluded over a month later, reducing the "original whale's" Bitcoin holdings to zero.
Institutions Buy the Dip
While retail investors flee, institutions keep accumulating. Bitcoin analyst Root noted on platform X that institutional Bitcoin ETF ownership hit 40% on Wednesday, up significantly from Q2 2024's 27%, when about 1,119 institutions held positions via U.S. spot Bitcoin ETFs.
Root called the 40% figure "conservative" as only institutions managing over $100 million must file 13-F reports with the SEC.
Despite $2.8 billion in Bitcoin ETF outflows since November, Farside Investors data shows rising institutional ownership suggests these investors are holding firm.
Market Sentiment Hits Cycle Low
CryptoQuant's Bull-Bear Index has plunged to 20/100 - signaling extreme bearishness and marking Bitcoin's most pessimistic market conditions this cycle, Cointelegraph reported earlier.
Growing fears of a bull market collapse have driven retail exits, creating a stark contrast with institutional behavior as these investors continue increasing spot Bitcoin ETF exposure during the panic.
Bitcoin currently trades around $85,823. The divergence between institutional and retail activity highlights growing confidence gaps among market participants.