By emerging as the largest holder, Bitcoin ETFs now have the chance to attract even more institutional investors, further reinforcing Bitcoin as an asset class.
U.S. spot Bitcoin Exchange-Traded Funds (ETFs) may just be the most impressive thing to happen in the world of crypto since the inception of Bitcoin itself. This follows after they recently surpassed the world-renowned Bitcoin creator, Satoshi Nakamoto, to become the world’s largest holder of the cryptocurrency.
According to data compiled by Shaun Edmondson and shared by Bloomberg ETF analyst Eric Balchunas, these funds now hold approximately 1,104,000 BTC. That is, as of December 5, 2024.
Going by the recent development, U.S. spot Bitcoin ETFs are now ahead of Satoshi, whose 1.1 million BTC stash has been a widely known fact in the crypto community.
It’s worth noting that the dominance of these Bitcoin ETFs extends beyond individual holdings. Even when compared to governments, major crypto exchanges, and top corporate institutions like MicroStrategy with their Bitcoin reserves, they maintain a leading position.
For comparison, MicroStrategy, which used to have the world’s largest corporate Bitcoin holdings, only holds 402,100 BTC as of December 5.
Unprecedented Growth in Bitcoin ETFs
Since the U.S. Securities and Exchange Commission gave approval to Bitcoin ETFs in January, the funds have experienced a massive increase in their popularity and growth. Particularly among those investors who only seek regulated exposure to the cryptocurrency.
Their growth has been so massive that, on December 5, the funds recorded net inflows of $766 million, marking six consecutive days of positive flows, according to data from Farside Investors. By all means, such consistent inflows can only represent that retail and institutional investors alike have taken an interest in these investment vehicles. Not just a shaky kind of interest, but one that seems to hold steady and unwavering.
Eric Balchunas shares an even more positive prediction for the Bitcoin ETFs. According to the popular ETF analyst, Bitcoin ETFs may outsize gold ETFs by Christmas if the ongoing momentum is sustained.
What This Means for Bitcoin and Investors
The recent development may mean that a shift has already taken place in how Bitcoin comes across to investors. Most especially, in terms of how the cryptocurrency is being traded.
By emerging as the largest holder, Bitcoin ETFs now have the chance to attract even more institutional investors, further reinforcing Bitcoin as an asset class. It also shows that the crypto market is gradually coming of age. That is, as regulated instruments are now gaining more recognition over individual holdings.
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