Bitcoin ETFs Will Soon Hold 1M Tokens, Close to as Much as Satoshi
Bitcoin exchange-traded funds (ETFs) in the U.S. are on the verge of holding over one million Bitcoin (BTC), a significant milestone that puts them in close proximity to the estimated holdings of the cryptocurrency's anonymous creator, Satoshi Nakamoto. This surge in holdings comes just 10 months after the funds began trading and has been fueled by a series of inflows as Bitcoin prices rise.
Bitcoin ETFs Close to Satoshi’s Holdings
As of mid-October 2024, U.S.-based spot Bitcoin ETFs are nearing the historic one million BTC mark, with a current total of 967,459 tokens. With steady inflows expected to continue, these funds could surpass the one million milestone within a few weeks. This development draws significant attention as it places Bitcoin ETFs in close comparison to Satoshi Nakamoto’s known holdings of approximately 1.1 million BTC.
According to Blockchain.com, Nakamoto’s stash has remained untouched for more than a decade.
Major players like BlackRock’s iShares Bitcoin Trust (IBIT) are contributing heavily to these ETF holdings. IBIT, currently holding 396,922 BTC, is poised to cross the 400,000 BTC threshold soon, securing its spot as one of the largest single Bitcoin holders globally
Binance, the leading cryptocurrency exchange, holds 636,000 BTC on behalf of its customers, placing it just behind Nakamoto in terms of Bitcoin reserves.
Strong Inflows Amid Rising Bitcoin Prices
Bitcoin ETFs have recorded some of their strongest inflows in recent weeks, driven by a rally in Bitcoin prices and growing optimism about the cryptocurrency’s future. During the week ending October 14, 2024, these funds saw inflows exceeding $2.1 billion, their most substantial weekly intake since March. This includes a single-day inflow of over $555 million, signaling renewed interest in Bitcoin from institutional investors
One of the key drivers behind these inflows is the increasing likelihood of a favorable political environment for cryptocurrencies in the upcoming U.S. presidential election. With the election looming and Bitcoin trading close to $68,000—a three-month high—investors are betting on continued price appreciation and further institutional adoption
.ETF Growth Since January
The rise of Bitcoin ETFs in the U.S. has been remarkable. Launched in January 2024, these funds have quickly become a significant force in the cryptocurrency market, offering investors exposure to Bitcoin without the need to directly hold the asset. Since their inception, U.S. Bitcoin ETFs have accumulated nearly one million BTC, with an average of 37,510 BTC being added monthly
Several high-profile ETF products have contributed to this growth, with BlackRock’s IBIT leading the charge. The fund has grown its holdings considerably in recent months, surpassing 396,000 BTC and positioning itself as the third-largest Bitcoin holder after Nakamoto and Binance. Other significant players include Fidelity’s Wise Origin Bitcoin Fund, which has also seen substantial inflows throughout the year
What’s Next for Bitcoin ETFs?
With Bitcoin ETFs on the cusp of holding more BTC than Satoshi Nakamoto, the broader implications for the cryptocurrency market are profound. This accumulation of Bitcoin in institutional funds suggests that traditional financial markets are increasingly embracing digital assets, a trend that could accelerate as regulations become more favorable.
Analysts predict that if the current pace of inflows continues, Bitcoin ETFs will surpass Nakamoto’s holdings by early 2025, marking a historic moment for the cryptocurrency industry. Some even believe that this shift in ownership could help stabilize Bitcoin’s price, as institutional investors tend to hold assets for longer periods compared to individual traders.
Moreover, the increasing number of ETFs acquiring Bitcoin may also reduce market volatility, as these funds typically lock in their holdings rather than engage in short-term trading. As institutional interest in Bitcoin continues to grow, the market may become less susceptible to dramatic price swings, which have long been a characteristic of the cryptocurrency
Bitcoin ETFs are set to break new ground by accumulating more BTC than even Satoshi Nakamoto, marking a significant milestone for both the funds and the broader cryptocurrency ecosystem. This development is a testament to the growing acceptance of Bitcoin as a legitimate asset class among institutional investors, and it could have long-lasting effects on the market as a whole.
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