Institutional demand for Bitcoin rises as US Spot Bitcoin ETFs now hold 4.6% of the total supply, valued at $58 billion, almost surpassing the holdings of the biggest BTC owner, Satoshi Nakamoto.
This surge underscores institutional investors’ preference for regulated investment options over direct crypto purchases.
Spot Bitcoin ETFs Grab Almost 5% of Total BTC Supply
According to data from SoSoValue, a prominent financial research forum, Bitcoin ETFs now hold total net assets of $57.73 billion, translating to 4.68% of Bitcoin’s total supply. BlackRock accounts for most of the BTC supply these funds hold, with $22.91 billion in net assets for its Bitcoin ETF. These funds have witnessed impressive inflows since they launched in January earlier this year.
Just like Bloomberg analyst Eric Balchunas predicted in August, these Spot Bitcoin ETFs are on course to surpass Satoshi Nakamoto’s holdings this month if they continue to witness the inflows they have recorded so far. Estimates put Satoshi’s holdings at 1.1 million BTC ($68.2 billion).
Interestingly, Balchunas also predicted that BlackRock could become the largest Bitcoin holder by late next year, with the world’s largest asset manager holdings surpassing Satoshi’s. He added that BlackRock will likely hold this position for the longest time if it surpasses the Bitcoin founder.
The institutional influence in the Bitcoin market has grown and is reflected in the incremental flows of capital into the Spot Bitcoin ETFs over recent weeks. Institutional investors favor Bitcoin for its long-term potential.
This has also been manifested in the increased involvement of wealth management firms such as Goldman Sachs and Morgan Stanley, which have substantially raised their stakes in Bitcoin-related ETFs.
BlackRock’s IBIT Leads the Charge
The debut of Bitcoin ETFs has been far stronger than expected, with impressive inflows and share price performances. Collectively, these ETFs garnered over $4 billion in first-day receipts, establishing a new record for the most money an ETF has taken in during its opening day.
BREAKING
525 ETFs were launched in 2024
The top 4 are all #Bitcoin ETFs
Most successful ETF launches in history pic.twitter.com/lTxZkam71M
— Quinten | 048.eth (@QuintenFrancois) October 4, 2024
Investors have poured $17.5 billion into Spot Bitcoin ETFs despite market volatility this year. This is highlighted by the iShares Bitcoin Trust (IBIT), which launched the most successful ETF in history, growing to $21.5 billion in assets in just seven months.
On September 20, the SEC approved options trading of the IBIT listed on Nasdaq under the ticker IBIT. According to Nasdaq, the options would be traded much like other ETF options under the same rules, which is another crucial step in institutionalizing crypto investments.
HBO Claims to Unmask Satoshi, Bitcoin Price Surges
Speculations about who the actual founder of Bitcoin, Satoshi Nakamoto, might be are very much in the public eye. Even the FBI commented on the issue. One theory suggested in an incoming HBO documentary is that Len Sassaman, known in cyberpunk culture and adept in cryptography, might be the inventor.
The crypto market jumped following HBO’s claim that it had unmasked Satoshi Nakamoto’s identity. The price jumped over the critical resistance at $62,000.
In the hour-long documentary by Emmy-nominated filmmaker Cullen Hoback, viewers get a glimpse into the mystery of the world’s biggest cryptocurrency. The possible unraveling of Nakamoto’s identity can send shockwaves through various globally powerful financial systems, reflecting different market moves.
Credit: TradingView
Growing speculation and media attention to Satoshi Nakamoto’s identity could continue to catalyze further upside action with Spot Bitcoin ETFs throughout the week. Should his identity be revealed, there may be questions about who has access to his BTC holdings.
If anything, the timing of the HBO documentary was especially instructive, landing as it does in the run-up to the 2024 presidential election in the United States, in which Bitcoin has become a central issue in political debate.
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