CryptoQuant's chief executive says the bitcoin market is experiencing a broad transfer of ownership despite record ETF inflows in 2023.

ETF accumulation and price reaction

Since the start of 2023, ETFs and strategy funds have cumulatively acquired 1.24 million BTC, yet these inflows did not secure sustained price appreciation.

According to CryptoQuant's CEO, the market is undergoing a widespread change in ownership as selling pressure has offset institutional buying.

Indicators and historical context

An additional signal is the rise in the share of supply trading at a loss, which reached 40.6%, reflecting weaker unrealized positions among holders.

Historically, similar readings have often appeared near cyclical troughs, though current values have not yet matched levels typically considered optimal for accumulation.

CryptoQuant's analysis suggests that aggressive sales surprised market participants despite ongoing institutional demand and extensive ETF purchases.

Market dynamics and implications

Price levels have returned to figures more than a year old, indicating accumulation by some investors coincided with distribution by others.

That dynamic, per the CEO, points to a redistribution phase rather than uniform accumulation across the market.

Accumulation into ETFs and strategy products concentrated bitcoin supply in custodial wallets, changing on-chain liquidity and price sensitivity to large sales.

Observers will track on-chain indicators and ETF flows to assess whether selling eases and price momentum reasserts itself in coming months.