Exchange-traded products (ETPs) tied to Bitcoin have now accumulated more than 1.47 million BTC, representing roughly 7% of the cryptocurrency’s maximum supply of 21 million coins.
U.S. ETFs Lead Holdings
Most of these assets reside in U.S.-based spot Bitcoin ETFs, together holding more than 1.29 million BTC. BlackRock’s iShares Bitcoin Trust (IBIT) leads the list with approximately 746,800 BTC, with Fidelity’s Wise Origin Bitcoin Fund (FBTC) holding slightly less than 200,000 BTC. U.S. funds as a whole control the world ETP market for the asset.
Since the end of 2024, Bitcoin ETPs globally have poured in around 170,000 BTC — valued at almost $19 billion at prevailing rates.
Demand Slows Down as Ethereum Picks Up
Even as all these inflows came in, recent evidence presents a slowdown in demand. In August, Bitcoin ETPs had net outflows of approximately $301 million. In comparison, Ethereum-based funds experienced high demand, attracting close to $4 billion over the same period, as per CoinShares.
Much of this movement results from whales transferring capital into Ether. One whale allegedly sold 4,000 BTC for almost 97,000 ETH over 12 hours, now possessing $3.8 billion in Ether. Nine such whales have cycled a total of $456 million into ETH after booking profits in Bitcoin, according to analytics firm Arkham.
Market Headwinds and Outlook
The cooling demand overlaps with September — traditionally Bitcoin’s worst month — as gold prices rise. Regulatory uncertainty is also a factor: the U.S. Securities and Exchange Commission is considering over 90 crypto ETF proposals, including highly awaited funds tied to Solana (SOL) and XRP, and decisions are anticipated in October.
Some experts are also wary of the long-term future of Bitcoin. The anonymous trader PlanC intimated that the rise to $1 million per BTC may be a seven-year process of incremental increases and not explosive expansion. Delphi Digital research further stated that if Bitcoin increases before the U.S. Federal Reserve reduces interest rates, the asset might experience a steep correction afterwards.
For the time being, Bitcoin is still under observation as institutional capital hedges between keeping positions and moving capital into other crypto assets.
Get the weekly commit
New blockchain deep dives every week.
