Spot Bitcoin exchange-traded funds (ETFs) in the United States are on track to reach a significant milestone: surpassing the estimated Bitcoin holdings of Bitcoin’s mysterious creator, Satoshi Nakamoto. With Bitcoin continuing its strong price performance in 2024 and growing institutional interest, these ETFs are quickly becoming some of the largest Bitcoin holders in the world.
As of late November 2024, US spot Bitcoin ETFs collectively hold around 1.081 million Bitcoin, just shy of Nakamoto’s estimated 1.1 million. Given that Nakamoto is believed to own approximately 5.68% of Bitcoin’s total supply, these funds are closing in on overtaking the creator’s holdings, which are valued at over $100 billion. Bloomberg’s Senior ETF Analyst, Eric Balchunas, noted that the ETFs are now 98% of the way to surpassing Nakamoto, with a potential milestone being reached by Thanksgiving if the current pace of inflows continues.
The surge in Bitcoin ETF inflows has been nothing short of impressive. In the last five trading days, inflows grew by approximately 97%, reaching $3.3 billion. BlackRock’s iShares Bitcoin Trust (IBIT), a key player in this space, has contributed $2 billion of this sum. This increase in inflows comes on the heels of the introduction of options trading for Bitcoin ETFs, which many believe is attracting a wave of institutional investors.
These developments underscore the growing institutional interest in Bitcoin and the legitimacy of Bitcoin ETFs as a means of gaining exposure to the cryptocurrency. As these ETFs accumulate more Bitcoin, they continue to close the gap with gold ETFs, which currently hold around $120 billion in assets under management (AUM). Bitcoin ETFs, now managing $107 billion in AUM, are on track to surpass gold ETFs in the near future, with some experts predicting this could happen by Christmas 2024.
Bitcoin’s exceptional performance in 2024 has been a key factor driving the rapid growth of spot Bitcoin ETFs. The cryptocurrency has surged nearly 160% since the start of the year, reaching levels near the $100,000 mark. This rise in Bitcoin’s price has contributed to the increased assets under management for Bitcoin ETFs, which are now positioned to become one of the largest asset classes in the financial world.
Bitcoin’s impressive $1.91 trillion market capitalization has now surpassed that of silver and major corporations like Saudi Aramco. However, despite this remarkable growth, Bitcoin still lags behind gold in terms of market cap, with gold remaining the world’s largest asset at over $18 trillion. The performance of Bitcoin ETFs in 2024 has demonstrated the growing importance of digital assets in the broader financial ecosystem.
The rapid rise of spot Bitcoin ETFs represents a significant shift in how institutional investors and traditional markets interact with cryptocurrencies. As these funds close in on surpassing Nakamoto’s Bitcoin stash, they are also narrowing the gap with gold ETFs, which have long been seen as the benchmark for safe-haven assets.
For Bitcoin, the milestone of overtaking Satoshi’s holdings is more than just a symbolic achievement. It highlights the growing adoption and acceptance of digital assets as mainstream investment vehicles. The continued success of Bitcoin ETFs could set the stage for even greater institutional involvement and a broader shift toward cryptocurrency integration in the global financial system.
Spot Bitcoin ETFs are rapidly becoming a dominant force in the crypto space, and the possibility of them surpassing Satoshi Nakamoto’s Bitcoin holdings by year-end marks a new chapter in the evolution of Bitcoin investment. With growing institutional interest and a surge in Bitcoin’s price performance, these ETFs are positioning themselves as major players in the global asset landscape. As we approach the end of 2024, it’s clear that Bitcoin and its associated investment vehicles are gaining increasing recognition in the world of finance, with many analysts forecasting further growth in the months ahead.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
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