The ETFs have been adding about 17,000 BTC per week, on average.
The approval of the funds has boosted the price of bitcoin.
The performance of spot bitcoin ETFs in the United States has been overwhelming since their debut in January of this year, and now, just over 10 months after going public, these funds (when taken together) They are close to beating Satoshi Nakamoto, the creator of bitcoin, as the largest holders of the digital currency.
Since their simultaneous approval by the United States Securities and Exchange Commission (SEC), the 11 spot bitcoin ETFs have experienced a massive influx of institutional money.
Investors, attracted by bitcoin’s growth potential, have driven up the price of the asset, giving it a strong push in the market.
Thus, in just a few months, these ETFs have already accumulated a total of 983,334 BTC, leaving only 16,666 BTC away from the wallet attributed to Nakamoto, which contains one million BTC, according to exposed by ETF specialist Eric Balchunas.
According to Balchunas estimates, funds have been accumulating approximately 17,000 BTC each week. “It is possible that next Wednesday the ETFs will surpass Nakamoto in BTC reserves,” he indicates.
This milestone would reflect how financial institutions, through these funds, are concentrating an increasing proportion of the total supply of bitcoin.
The speed with which this volume has been accumulated is remarkable, says Balchunas: “They achieved this before their first birthday, incredible!”
However, warns that the outlook is not without risks. A “violent liquidation” could delay this progress, as in such an event, fund managers would have to sell part of their bitcoin holdings to satisfy capital withdrawal requests.
This could slow the rise of ETFs, although Balchunas believes that nothing will stop their growth and it will be inevitable that they will surpass Nakamoto’s holdings.
BlackRock ETF leads the market
Among the funds, the iShares Bitcoin Trust (IBIT), managed by BlackRock, stands out as the absolute leader in the bitcoin ETF market.
Last April, IBIT recorded net capital inflows for 70 consecutive days, placing it among the ten ETFs with the longest streak of inflows in history, as reported by CriptoNoticias.
Today, IBIT controls 403,714 BTCequivalent to 41% of the total held by bitcoin ETF funds, thus consolidating its dominance in the ETF market.
An example of this was seen this Monday, with IBIT has reached a trading volume of more than $2 billion at 1:30 p.m., positioning itself as the fifth most traded ETF of the day, according to reported by the X account of the analyst whose pseudonym is HODL15Capital.
The popularity of The ETF has acted as a catalyst for the price of bitcoingenerating sustained demand that directly impacts the market. Three months after the release of these ETFs, bitcoin reached its all-time high of $73,700.
As this cycle of bitcoin acquisition by funds to back their actions continues, the availability of the currency on the open market decreases, which usually leads to an increase in its price, thus creating a virtuous cycle for investors.
Bitcoin and the US presidential election
In addition to ETFs, the political context of the United States has added a new boost to bitcoin, which has now also become a topic of election debate.
Just one week before the presidential elections, the result could influence the price of the currency and even now it is something that is happening. BTC is close to the all-time high, as can be seen in the following chart. TradingView.
Investors see a victory for the Republican candidate, Donald Trump, against the Democratic candidate and current Vice President Kamala Harris, as Trump is perceived as a leader with friendlier policies towards digital assets.
During his campaign, Trump pledged to turn the United States into a Bitcoin superpower, as well as to further boost mining of the digital currency.
Balchunas explains that, if the price of bitcoin continues its rise and Trump emerges victorious, “we could see FOMO (fear of being left out) activated and everything happens faster.” The expectation around the election has fueled bitcoin buying, with many speculating about an increase in its value if Trump is elected.
Thus, as the outcome of this close competition approaches, ETFs continue to advance strongly, on the verge of a historic achievement: surpassing Satoshi Nakamoto in bitcoin holdings. All of this occurs against a backdrop of sustained institutional demand and a political environment that promises to add even more volatility to the market.