Bitcoin exchange-traded funds (ETFs) are nearing a major milestone with 97% of the way to holding one million BTC, with BlackRock leading the race with nearly 400,000 BTC. This massive accumulation by institutions marks a decisive turning point in the adoption of crypto.
A record accumulation driven by the giants of Wall Street
On Wall Street, the new spot Bitcoin ETFs are dominating the financial news at the start of 2024. BlackRock, the largest asset manager in the world, is in the lead with 396,883 BTC under management, followed by Grayscale as well as Fidelity. This dazzling accumulation since January testifies to an unprecedented institutional appetite for the first crypto.
L'enthusiasm of institutional investors manifests itself in massive daily capital inflows into these regulated financial products. The speed with which these ETFs are accumulating Bitcoin exceeds all initial expectations of industry analysts.
At this steady pace, ETFs could soon surpass the alleged holdings of Satoshi Nakamoto, the anonymous creator of Bitcoin, estimated at 11.1 million BTC. A historic shift which would symbolically mark the passage of Bitcoin from the hands of its creator to those of traditional finance.
The institutional rush is lastingly transforming the Bitcoin market
The massive and continued purchase of Bitcoin by ETFs naturally pushes prices upward. Market data shows that more and more traders are betting on this rise.
This trend is expected to strengthen as two forces combine: on the one hand, the amount of Bitcoin available for purchase is gradually decreasing, and on the other, large institutional investors continue to buy it regularly. This situation of increasing scarcity could accentuate the rise in Bitcoin prices.
The entry of institutional investors via these ETFs also brings increased legitimacy to Bitcoin as an asset class. US regulators, by approving these products, have paved the way for crypto to be more deeply integrated into the traditional financial system.
Analysts expect an acceleration in institutional investments in the coming months, in particular thanks to the improvement of the regulatory framework and the multiplication of Bitcoin exposure options for professional investors.
In short, the symbolic mark of one million BTC under management by ETFs should be crossed soon, marking a new era for Bitcoin. This massive institutional adoption could catalyze a new phase of growth for crypto, driven by a growing scarcity effect.
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