The U.S. spot bitcoin exchange-traded funds are on the verge of holding over one million tokens after just ten months of trading. This surge in holdings was fueled by significant inflows into the funds as bitcoin (BTC) continues to rally leading up to the election. As of now, the ETFs hold approximately 967,459 tokens, and with continuous inflows, they are expected to surpass the one million mark in the upcoming weeks. This would bring them close to the holdings of Satoshi Nakamoto, who owns 1.1 million tokens according to Blockchain.com data.
Following Satoshi Nakamoto, the second largest holder of bitcoin is Binance, which reported holding 636,000 BTC as of October 1st, as indicated in its Proof of Reserves. It is likely that most of these holdings belong to customers rather than being the exchange’s own assets. BlackRock’s iShares Bitcoin Trust (IBIT) currently manages 396,922 BTC on behalf of its clients, placing the asset management giant in third place in terms of bitcoin holdings.
Interest in these ETFs, which had declined during months of stagnant or downward price movement, has seen a revival alongside the recent surge in bitcoin prices. At the time of writing, bitcoin was trading close to a three-month high just below $68,000. Last week, the funds experienced their largest single-day inflows since early June, with over $555 million coming in on October 14th. The total inflow for the week amounted to $2.1 billion, marking the highest influx since March.
The recent rally in the largest cryptocurrency by market capitalization can be attributed to various factors, including the increased likelihood of a victory for crypto-friendly Donald Trump in the upcoming U.S. presidential election. This positive sentiment has contributed to the upward momentum in bitcoin prices over the past two weeks.
It is worth noting that the rapid accumulation of bitcoin by these ETFs reflects the growing mainstream acceptance and adoption of the cryptocurrency. As more institutional investors and asset management firms like BlackRock get involved in the crypto space, it further legitimizes bitcoin as a viable asset class. The increasing interest in bitcoin ETFs also underscores the growing demand for exposure to digital assets among traditional investors seeking diversification in their portfolios.
Overall, the rise in holdings of bitcoin by these ETFs signals a new era of institutional involvement in the cryptocurrency market, paving the way for further growth and acceptance of digital assets in the mainstream financial landscape.