Bitcoin ETFs Now Holding Over 1 Million BTC, Potentially Impacting Bitcoin's Growth
Witness the rise of Bitcoin ETFs as they amass over 1 million BTC, signaling a shift in the cryptocurrency landscape. Grayscale and BlackRock lead the charge, amidst debates on self-custody and institutional acceptance of Bitcoin.
Bitcoin exchange-traded funds (ETFs) are becoming a significant force in holding Bitcoin (BTC). The total amount of BTC held by ETFs has surpassed the impressive mark of 1 million coins, with an estimated value of around $68.7 billion at current prices.
Grayscale's Bitcoin Trust (GBTC) remains the leading fund, owning 289,040 BTC worth approximately $19.9 billion. However, BlackRock's iShares Bitcoin Trust (IBIT) is rapidly catching up with 287,168 BTC, equivalent to $19.8 billion, and could potentially surpass GBTC this week with steady inflows.
The increasing amount of BTC held by ETFs has raised concerns that it may slow the growth of self-custodied Bitcoin. However, data shows that the number of addresses holding 1 BTC or more has not increased from 2023 to 2024, and even remained stagnant from 2017 to 2018.
Nevertheless, the substantial BTC holdings by ETFs also mark the growing institutional acceptance of this digital asset. This could drive further legitimization and increased trading of Bitcoin in the future.
Investors and market observers are waiting to see how the rising BTC holdings by ETFs will impact Bitcoin's self-custody and decentralization, as well as its effect on the price and liquidity of the leading cryptocurrency.
Source: cointelegraph
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