Institutional liquidity providers, market makers, and over-the-counter (OTC) trading desks, regardless of the term you choose, have taken in most of Germany’s bitcoin since sales began in June 2024. Data reveals that only a small amount of BTC was moved to centralized crypto exchanges like Coinbase, Kraken, and Bitstamp.
Institutional Liquidity Providers and OTC Desks Absorbed 88% of Germany’s Bitcoin Sales
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Institutional Players Absorb Bulk of Germany’s Bitcoin
While all the BTC was sold, Germany’s bitcoin (BTC) sales have recently been a hot topic. The wallets utilized by the German government’s Bundeskriminalamt (BKA) have been active for two years. Prior to holding the 50,000 BTC from the piracy site Movie2k, these wallets contained seized BTC from the darknet marketplace Hydra Market. The BKA obtained the 50,000 BTC through several transactions from Movie2k wallets, starting on Jan. 16, 2024.
At the end of June, the initial counterparty wallet involved in these transactions was the bitcoin wallet “139Po.” According to Arkham Intelligence data, this wallet might be associated with the institutional digital asset liquidity provider B2C2. However, there is uncertainty about this address name tag, as it is not conclusively verified that the wallet labeled “B2C2” actually belongs to the firm. However, the wallet that is labeled B2C2 or “139Po” saw the largest inflows from the German government.
In fact, 57.84% of the funds spent by Germany were transferred to the B2C2 wallet. Notably, the B2C2 wallet did not return any BTC to the German government after the deposits. The only entities that sent funds back to the BKA wallets were the German government itself, moving funds internally, and exchanges like Coinbase, Kraken, and Bitstamp. The B2C2 wallet absorbed 28,922.142 BTC, valued at approximately $1.69 billion at current BTC exchange rates. Similarly, the address tagged “Flow Traders,” which provides comparable services, took in 13,334.202 BTC, worth over $781 million.
The global proprietary trading firm and market maker Flow Traders did not return any funds to the German government either. The OTC and liquidity provider Cumberland DRW acquired 1,777.017 BTC, roughly $104 million, from the German government and likewise did not return any funds. As of July 13, Cumberland still holds 1,467 BTC, valued at around $86 million. The B2C2 wallet is currently empty, while Flow Traders holds approximately 2,263 BTC, worth $132 million.
Germany’s bitcoin ( BTC) sales, primarily absorbed by institutional liquidity providers, signal a significant shift in market dynamics. With major players like B2C2, Flow Traders, and Cumberland DRW taking possession, the move underscores growing institutional interest and trust in BTC. For example, as the German government sold approximately 44,033.361 BTC to institutional liquidity providers, U.S. spot bitcoin exchange-traded funds (ETFs) experienced six consecutive days of inflows.
What do you think about the fact that 88% of the bitcoin from Germany went to liquidity providers? Share your thoughts and opinions about this subject in the comments section below.
