Exchange-traded products (ETPs) that track Bitcoin have now amassed over 1.47 million BTC, equivalent to about 7% of the cryptocurrency’s upper limit of 21 million coins.
U.S. ETFs Lead Holdings
Most of these funds are held in U.S.-based spot Bitcoin ETFs, which in aggregate hold more than 1.29 million BTC. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with approximately 746,800 BTC, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with approximately 200,000 BTC. Overall, U.S. funds are the masters of the global ETP market for the asset.
Since late 2024, Bitcoin ETPs globally have accumulated around 170,000 BTC — equivalent to almost $19 billion at prevailing prices.
Demand Slows Down As Ethereum Picks Up
Although these inflows, there has been a slowdown in demand according to recent evidence. Last month, Bitcoin ETPs experienced net outflows of approximately $301 million. Meanwhile, Ethereum-based funds experienced robust demand, attracting nearly $4 billion during the same period, as per CoinShares.
Some of this movement is due to big Bitcoin holders transferring funds into Ether. One whale traded 4,000 BTC for almost 97,000 ETH over the course of 12 hours, now holding $3.8 billion in Ether. Analytics firm Arkham reported that nine such whales have cycled a combined $456 million into ETH after selling profits out of Bitcoin.
Market Headwinds and Outlook
The cooling demand coincides with September — traditionally Bitcoin’s weakest month — when gold prices rise. The other factor is the uncertainty of regulation: The U.S. Securities and Exchange Commission is weighing over 90 crypto ETF applications, including highly expected funds tied to Solana (SOL) and XRP, which are due to be decided in October.
Some analysts are also wary of Bitcoin’s long-term path. PlanC, a pseudonymous trader, proposed that the rally to $1 million per BTC may take seven years of steady appreciation and not a blowout. Delphi Digital research company followed up by noting that if Bitcoin does go up before the US Federal Reserve lowers rates, the asset may experience a steep correction later on.
For now, Bitcoin remains under watch as institutional funds balance between holding positions and shifting capital into alternative crypto assets.
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