Bitcoin ETPs Now Hold 7% of Maximum BTC Supply
Bitcoin exchange-traded products (ETPs) now collectively hold more than 1.47 million BTC, accounting for around 7% of the cryptocurrency’s capped 21 million supply.
US-based spot ETFs are the largest contributors, with over 1.29 million BTC spread across 11 funds as of Sunday, according to data from HODL15Capital. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with 746,810 BTC, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with nearly 199,500 BTC.
Growing cryptocurrency ETP holdings
Global Bitcoin ETPs added over 170,000 BTC between Dec. 31, 2024, and this past Sunday, equal to about $18.7 billion in value. Yet despite this growth, August showed signs of cooling demand. Worldwide Bitcoin ETPs registered a net outflow of $301 million for the month, while Ethereum funds brought in $3.95 billion during the same period, according to CoinShares.
Investor rotation into Ethereum
Market data suggests large holders are shifting capital out of bitcoin and into ether. On Monday, one bitcoin whale sold 4,000 BTC in exchange for nearly 97,000 ether, giving them a $3.8 billion ETH position.
Arkham Intelligence reported that nine whales together rotated $456 million from BTC into ETH, locking in profits. This comes as September has historically been a weaker month for bitcoin performance, while gold prices have edged higher.
At the same time, uncertainty lingers with 92 crypto-related ETF applications still pending with the US Securities and Exchange Commission. Upcoming October decisions could bring new funds for assets such as Solana and XRP.
Pseudonymous analyst PlanC argued that Bitcoin’s long-term rise may be less dramatic, predicting, “Instead, we just keep grinding slowly upward to $1,000,000 over the next seven years in a very boring and underwhelming way.” Research firm Delphi Digital added that Bitcoin may rally and then crash if rate cuts from the Federal Reserve spark speculative momentum beforehand, though it could remain stable if activity stays muted.
Sources:
https://cointelegraph.com/news/bitcoin-etps-hold-7-percent-bitcoin-total-supply