- Bitcoin ETFs now hold more Bitcoin than Satoshi Nakamoto – a sign of robust demand
- ETF activity has significantly ballooned this year, spurring BTC’s price on the charts
As a researcher with years of experience studying the crypto market, I find myself consistently amazed by the rapid pace at which Bitcoin and its associated instruments are evolving. The recent development where U.S. Spot Bitcoin ETFs now hold more Bitcoin than Satoshi Nakamoto is nothing short of phenomenal. This milestone underscores the robust institutional demand for Bitcoin and could potentially serve as a catalyst for further adoption.
This year, the popularity of Bitcoin Exchange-Traded Funds (ETFs) has significantly contributed to Bitcoin’s demand. In fact, the amount of these ETFs amassed over the past few months has reached unprecedented levels, even surpassing the holdings attributed to Satoshi Nakamoto.
As of December 6th, it’s said that Bitcoin ETFs in the United States collectively held approximately 1.104 million Bitcoins. Interestingly, this amount surpasses the 1.1 million coins linked to Bitcoin’s creator, Satoshi Nakamoto, in a single address. This indicates that American institutions now hold the largest portion of circulating Bitcoin. This information was initially shared by Eric Balchunas on Twitter via Bloomberg.
US SPOT BITCOIN EXCHANGE-TRADED FUNDS (ETFs) HAVE RECENTLY OVERTAKEN SATOSHI IN TOTAL AMOUNT OF BITCOIN HELD, WITH A TOTAL OF OVER 1.1 MILLION BITCOINS – THE LARGEST HOARD IN THE WORLD. THIS IS AN ACHIEVEMENT FOR FUNDS THAT ARE STILL RELATIVELY YOUNG, AS THEY HAVE ONLY EXISTED FOR A YEAR OR LESS. This is truly astonishing.
This progress underscores strong institutional interest throughout the market. However, it’s important to note that this achievement hasn’t gone uncontested. For instance, Jonas Schnelli, a previous Bitcoin developer, has voiced criticism, likening it to a symbol of centralization.
The issue of centralization in the cryptocurrency market arises from concerns about control. When a large portion of Bitcoin is held by centralized organizations, it creates an opportunity for a 51% attack to occur. At present, institutional holdings make up approximately 5.5% of the entire circulating supply.
The current distribution of institutional ownership extends to various businesses managing Bitcoin Exchange-Traded Funds (ETFs). However, this concentration doesn’t automatically imply centralization, but rather a focus on specific areas within the broader Bitcoin ETF landscape.
A milestone for Bitcoin institutional adoption
In 2024, it’s clear that exchange-traded funds (ETFs) own most of the Bitcoin, demonstrating just how appealing Bitcoin has become to institutional investors. By examining the total inflow of Bitcoin over time (cumulative flows), we can see the real level of demand for Bitcoin through ETFs.
Based on this information, the cumulative flow of spots (or transactions) nearly doubled from early August to December, demonstrating the intense demand that resulted from various combined influences. This growth could potentially double again due to the incoming pro-cryptocurrency administration in the U.S. and the decreasing interest rates.
As an analyst, I’ve observed a notable increase in institutional interest towards ETFs during their initial approval phase. This surge indicates a strong positive sentiment towards this asset, which might pave the way for even greater demand in the upcoming years.
An implication could be that the high demand might inspire other nations to endorse their own ETFs (Exchange-Traded Funds) in response. Nations such as Japan, China, Russia, and South Korea, among others, have already shown an inclination towards Bitcoin, which suggests a possible trend of more countries jumping on the bandwagon.
This result clearly highlights a drastic change in viewpoint regarding Bitcoin, as numerous governments previously opposed it. To put it another way, the rate at which Bitcoin is being adopted could potentially skyrocket in the future.
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2024-12-08 00:07