Recent reports indicate that issuers of Spot Bitcoin ETFs now possess nearly 5% of the total Bitcoin supply. This achievement highlights the increasing demand and swift growth of Spot BTC ETFs in the market, providing institutional investors with a comparatively low-risk method to obtain Bitcoin. The rising demand may also trigger a potential boost in Bitcoin's value.
ETFs for Bitcoin Own 5% Of The Total Supply
Almost 5 percent of the 21 million coins that make up Bitcoin are currently held via spot ETFs. According to data from the blockchain analytics platform Dune, there are over 842,000 BTC, or roughly $57.2 billion, in total on-chain holdings for Spot BTC ETFs in the US.
According to data published in a screenshot on X (previously Twitter) by MicroStrategy co-founder and former Chief Executive Officer (CEO), Michael Saylor, US Bitcoin ETFs own precisely 4.27% of the current BTC supply, while global BTC ETF issuers control around 1,002,343 BTC.
Saylor revealed that 32 Spot Bitcoin ETFs collectively hold "one Nakamoto of BTC," meaning these ETFs possess about one million BTC. This global ETF holding is five times larger than Saylor’s own Bitcoin assets, which total 214,400 BTC and are valued at $15 billion.
In the U.S., major asset management firms like BlackRock, Grayscale, and Fidelity Investments provide the majority of Spot BTC ETFs. According to blockchain analytics platform Arkham Investments, Grayscale and BlackRock are among the largest ETF holders worldwide, with Grayscale Bitcoin Trust (GBTC) holding around 288,084 BTC and BlackRock iShares Bitcoin Trust (IBIT) holding 284,027 BTC.
Other significant Spot Bitcoin ETF holders include Fidelity Wise Origin Bitcoin BTC (FBTC) with 154,370 BTC, Active Bitcoin Futures Strategy ETF (ARKA) with 48,444 BTC, and Bitwise Bitcoin ETF (BITB) with 36,092 BTC.
Possible BTC Price Increase Upcoming?
After Spot BTC ETFs were approved on January 10, the price of BTC increased exponentially, reaching a new all-time high of over $73,000 in March. As the market for Spot Bitcoin ETFs expanded, so did the use of BTC.
Given that Spot BTC ETFs currently own about 5% of the whole supply of BTC, this could indicate a bullish rally and lead to price spikes to all-time highs. According to CoinMarketCap, the price of Bitcoin is currently trading at $68,192, below the $70,000 threshold.
BTC's price may soon rise because to the steady inflows and growing demand for Spot BTC ETFs. Additionally, cryptocurrency analyst Ali Martinez has continued to have a positive stance on Bitcoin, forecasting a possible quick return.
May 2024, Cryptoniteuae