A recent report by IntotheBlock reveals a two-tiered market in the cryptocurrency world, where institutional investors are driving the growth of Bitcoin exchange-traded funds (ETFs), while retail investors remain cautious. The launch of Bitcoin ETFs on the New York Stock Exchange in early 2024 marked a significant turning point, allowing institutional money to enter the crypto market. This has benefited Bitcoin whales, who have accumulated large amounts of the cryptocurrency through these new financial vehicles. According to IntotheBlock's data, these whales have collectively amassed an additional 250,000 Bitcoins, restoring their holdings to pre-FTX collapse levels in 2023.

Hedge funds, expected to be the driving force behind institutional adoption, have invested billions in Bitcoin ETFs, signaling their confidence in the cryptocurrency's future. Public pensions, such as the state of Wisconsin's $160 million investment, are also entering the market.

Although the initial reception for US Bitcoin ETFs was enthusiastic, with record-breaking inflows in January, the growth seems to be slowing down. Experts suggest that the early surge may have been driven by a limited number of institutional adopters, and recent weeks have seen a decrease in inflows, indicating a wait-and-see approach from some investors.

In contrast, the launch of Bitcoin ETFs in Hong Kong received a lukewarm response, with a mere $12.7 million in volume on the first day of trading, compared to the $4.6 billion recorded by US ETFs on their debut. This suggests that the Asian market may not be as eager to embrace cryptocurrency.

Retail investors appear unconvinced by the recent surge or wary of the volatility associated with cryptocurrency, leading to a decrease in the creation of new Bitcoin addresses. The reasons for this hesitancy could be the FTX collapse, market correction in early 2024, and the complexities of ETFs, resulting in a wait-and-see attitude among retail investors.