U.S. Bitcoin ETFs are snapping up nearly five times the BTC produced weekly, edging closer to surpassing Satoshi Nakamoto’s legendary holdings.
US spot Bitcoin exchange-traded funds (ETFs) are seeing a significant accumulation of Bitcoin this October, with Bitcoin ETFs purchasing nearly five times the weekly BTC production rate. This strong demand has led ETF issuers to buy Bitcoin at levels that notably exceed newly mined supply, further concentrating Bitcoin holdings within the ETF market.
Bitcoin ETFs Amass Nearly a Million BTC
In the week of October 21–25 alone, the 11 active spot Bitcoin ETFs collectively acquired 15,194 BTC, compared to the 3,150 BTC mined during that period. Data from HODL15Capital highlights this accelerated accumulation as ETF issuers continue to amass significant reserves of Bitcoin, currently holding 977,122 BTC as of October 25.
Demand > Supply #Bitcoin pic.twitter.com/XxK116ibgL
— HODL15Capital (@HODL15Capital) October 26, 2024
This figure brings ETF holdings within close range of the estimated holdings of Satoshi Nakamoto, Bitcoin’s pseudonymous creator, believed to control just over one million BTC. Notably, BlackRock’s BTC reserve remains the largest among ETFs, holding approximately 403,714 BTC, which amounts to nearly 2% of Bitcoin’s total supply.
Institutional Bitcoin Demand Through ETFs May Reshape Market Dynamics
The rapid pace of ETF accumulation has raised speculation about whether ETFs may soon hold more Bitcoin than any single entity, potentially surpassing the wallet linked to Satoshi Nakamoto if current trends persist. Bloomberg ETF analyst Eric Balchunas remarked on this trajectory, noting, “Not yet 10 months old and the ETFs are 97% of the way to holding 1 million BTC, and 87% of the way to passing Satoshi as the biggest holder.”
UPDATED: Number of Bitcoin held by U.S. Bitcoin ETFs @BlackRock ‘s Bitcoin ETF hits 400,000 #Bitcoin held pic.twitter.com/yyApvc0WlU
— HODL15Capital (@HODL15Capital) October 26, 2024
Analysts, however, are wary of potential volatility risks associated with the increased concentration of Bitcoin in ETFs. With a significant portion of Bitcoin’s fixed supply now under ETF control, market sensitivity to ETF-driven demand could lead to greater volatility, especially during periods of high inflows or outflows. This influence may amplify price fluctuations in the asset class, impacting broader market liquidity and stability.
As Bitcoin’s limited supply meets continued institutional demand, the influence of ETFs in the market is set to grow, potentially reshaping liquidity and price stability in ways not previously seen in the cryptocurrency market.