Bitcoin ETF Issuers Now Hold A Record 5% Of The Total BTC Supply, Catalyst For A Surge?

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As a seasoned crypto investor with years of experience in the market, I find this recent development extremely noteworthy. The fact that Spot Bitcoin ETF issuers now control nearly 5% of BTC‘s total supply is a clear indication of the growing institutional demand for bitcoin.

Recent findings indicate that approximately 5% of the entire Bitcoin supply is now held by issuers of Spot Bitcoin Exchange-Traded Funds (ETFs). This significant development reflects the burgeoning interest and expanding presence of Spot BTC ETFs in the financial marketplace. Institutional investors can leverage these funds as a more risk-controlled avenue to acquire Bitcoins. The escalating demand may also trigger a potential price rise for Bitcoin.

Bitcoin ETFs Control 5% Of BTC Supply

As a crypto investor, I’m always keeping an eye on the Bitcoin Exchange-Traded Funds (ETFs) and their holdings. According to recent data from Dune, the analytical platform, these Spot Bitcoin ETFs in the US now control around 5% of the total 21 million coins of Bitcoin in existence. In dollar terms, this equates to approximately 842,000 BTC, which translates to a staggering value of roughly $57.2 billion.

Approximately 4.27% of the total Bitcoin supply is managed by US Bitcoin Exchange-Traded Funds (ETFs), based on information revealed by Michael Saylor, the co-founder and former CEO of MicroStrategy, in a screenshot he posted on X (previously known as Twitter). Global BTC ETF issuers collectively hold approximately 1,002,343 Bitcoin.

Saylor revealed that in total, 32 Bitcoin ETFs from various issuers now possess around one unit of Nakamoto’s Bitcoins. This equates to approximately one million BTC. It is important to note that the combined holdings of ETFs worldwide currently surpass MicroStrategy’s Bitcoin assets by a significant margin, with Saylor controlling 214,400 BTC, valued at $15 billion.

A large proportion of Spot BTC ETFs available in the US is offered by well-known asset managers like BlackRock, Grayscale, Fidelity Investments, and others.

As a blockchain analyst at Arkham Investments, I’ve examined the latest data from reputable platform’s reports. Grayscale and BlackRock stand out as significant holders of Bitcoin Exchange-Traded Funds (ETFs) on a global scale. Specifically, Grayscale’s Grayscale Bitcoin Trust (GBTC) holds approximately 288,084 BTC in its trust. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) manages an impressive portfolio of around 284,027 BTC.

Among the Bitcoin ETFs that directly hold Bitcoins, Fidelity Wise Origin Bitcoin Trust (FBTC) has amassed a total of 154,370 Bitcoin units, while ARK Invest’s Active Bitcoin Futures Strategy ETF (ARKA) and Bitwise Bitcoin Trust (BITB) have accrued 48,444 and 36,092 Bitcoin units, respectively.

Potential Price Surge Ahead For BTC?

After receiving the green light for Spot Bitcoin ETFs on January 10th, Bitcoins price skyrocketed, reaching a record-breaking peak of over $73,000 in March. The escalating interest in Spot Bitcoin ETFs coincided with a significant surge in BTC adoption.

With around 5% of Bitcoin’s entire supply currently held by Spot BTC ETFs, this could be a sign of an upcoming bullish trend for Bitcoin, possibly leading to significant price increases and reaching new record highs. At present, Bitcoin’s price is listed at $68,192 on CoinMarketCap, just below the $70,000 threshold.

As the desire for Spot Bitcoin ETFs continues to grow and steady investments pour in, Bitcoin’s value may bounce back shortly. Crypto analyst Ali Martinez shares this perspective, anticipating an imminent recovery. In his recent Reddit post, Martinez revealed that Bitcoin’s TD Sequential shows a buy signal on its hourly chart.

Bitcoin ETF Issuers Now Hold A Record 5% Of The Total BTC Supply, Catalyst For A Surge?

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2024-05-29 01:11