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

New reports have revealed that Spot Bitcoin ETF issuers now hold almost 5% of BTC’s total supply. This milestone underscores the growing demand and rapid expansion of Spot BTC ETFs in the market, offering institutional investors a relatively low-risk means to acquire BTC. The surge in demand could also catalyze a potential increase for BTC. 

Bitcoin ETFs Control 5% Of BTC Supply

Spot Bitcoin ETFs now hold nearly 5% of BTC’s total supply of 21 million coins. Data from blockchain analytics platform, Dune has disclosed that the total on-chain holdings for Spot BTC ETFs in the United States is about 842,000 BTC, valued at approximately $57.2 billion. 

Precisely, US Bitcoin ETFs hold 4.27% of the current BTC supply, while global BTC ETF issuers hold about 1,002,343 BTC according to data shared in a screenshot on X (formerly Twitter) by MicroStrategy co-founder and former Chief Executive Officer (CEO), Michael Saylor. 

Saylor disclosed that 32 Spot Bitcoin ETFs now cumulatively hold “one Nakamoto of BTC,” implying that these ETF issuers hold approximately one million BTC. Notably, the global ETF holdings are currently five times the size of Saylor’s BTC assets which amounts to 214,400 BTC, valued at $15 billion. 

The majority of the Spot BTC ETFs held within the US are provided by prominent asset management companies such as BlackRock, Grayscale, Fidelity Investments and more. 

Reports from blockchain analytics platform, Arkham Investments show that Grayscale and BlackRock are one of the largest ETF holders globally. Grayscale Bitcoin Trust (GBTC) holds approximately 288,084 BTC while BlackRock iShares Bitcoin Trust (IBIT) owns 284,027 BTC.

Other Spot Bitcoin ETF issuers who hold BTC 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.  

Potential Price Surge Ahead For BTC?

Following the approval of Spot BTC ETFs on January 10, BTC witnessed an exponential price increase, surging to a new all-time high above $73,000 in March. As the demand for Spot Bitcoin ETFs grew, BTC also experienced soaring adoption. 

Now, with Spot BTC ETFs holding approximately 5% of BTC’s total supply, this could signal a bullish rally for BTC, potentially triggering price surges to new highs. As of writing, BTC’s price is trading below the $70,000 mark at $68,192, according to CoinMarketCap.

With the increasing demand for Spot BTC ETFs and consistent inflows, BTC’s price could witness a rebound soon. Crypto analyst Ali Martinez has also maintained an optimistic outlook on BTC, predicting a potential rebound soon. He disclosed in an X post that BTC’s TD Sequential is currently presenting a buy signal on its hourly chart. 

Featured image created with Dall.E, chart from Tradingview.com