I've watched Bitcoin's dance with ETFs since early 2024, and let me tell you - it's been quite the show. Three distinct waves of veteran Bitcoin holders have shuffled their precious coins into these new investment vehicles, revealing an interesting pattern in the market's evolution.

Looking at the data from CryptoQuant, each major ETF inflow spike coincided with significant Coin Days Destroyed (CDD) signals. This metric essentially shows when long-term holders finally decide to move their coins after sitting on them for ages. When summer 2024 saw the first major ETF buying wave, these diamond hands started transferring their wealth. The pattern repeated during fall 2024 and again in summer 2025.

What's really happening here is a massive wealth transfer from crypto veterans to institutional vehicles that make Bitcoin accessible to mainstream investors. It's democratizing access, sure, but I can't help wondering if something fundamental is being lost in this transition.

Right now, ETF demand has cooled significantly. Bitcoin trades around $110,500, which represents a modest 2% weekly gain. But without fresh demand flowing through these vehicles, we could face increased selling pressure from newer, less committed holders.

The market feels precarious. October has already been brutal for altcoins, with their market cap dropping 15%. Bitcoin might be holding relatively steady, but the ecosystem around it is showing signs of strain. These ETF flows aren't just interesting data points - they're reshaping the very ownership structure of Bitcoin, potentially changing its market dynamics forever.