Bitcoin exchange-traded funds are currently the largest holders of the flagship cryptocurrency. The 12 existing Spot Bitcoin ETFs have combined assets under management of more than $100 billion, making them one of the most successful ETF launches in history. The fund currently owns just over 1.1 million Bitcoins, which is approximately 5% of all Bitcoins in existence. BTC.CM= YTD Mountain Bitcoin in 2024 In total, Bitcoin ETFs currently hold more than the legendary pseudonymous founder Satoshi Nakamoto, who is believed to control as much as 1.1 million Bitcoins. You own cryptocurrency. Largest Bitcoin Holders US Spot ETF 1,104,534 Satoshi Nakamoto 1,100,000 Binance 633,000 MicroStrategy 402,100 US Government 198,109 Chinese Government 194,000 Bitfinex 184,027 Kraken 158,959 Block One 164,000 Robinhood 142,361 Source: Bloomberg/Eric Balchunas “Bitcoin ETFs are becoming the vehicle of choice for Bitcoin holders,” Brian Hartigan, global head of ETFs at Invesco, said Monday on CNBC’s “Halftime Report.” He spoke at Bitcoin now represents 1% of all ETF assets Here's the math: U.S. ETFs currently manage just over $10 trillion in assets. The Spot Bitcoin ETF currently accounts for more than $100 billion in assets, with Bitcoin accounting for approximately 1% of assets under management across the ETF universe. This 1% is an important milestone. Bitcoin supporters have long sought ways to convince skeptics that they should allocate a small portion of their portfolio to the coin. A typical argument is that as assets under management increase, investors should allocate 1% of their portfolio to Bitcoin. The argument is that if Bitcoin fails, a 1% loss is not a big deal, but the scarcity of the cryptocurrency means it has a greater chance of increasing in value over time. Now that Bitcoin accounts for 1% of ETF assets, it has become a little easier to make such a claim. “So for people asking that question, if you don't own Bitcoin, you're 1% short on your Bitcoin allocation,” Hartigan said. Why have Bitcoin ETFs been such a hit? The popularity of ETFs boils down to pent-up demand and market appreciation. “I think everything is perfectly aligned for these products to come to market,” ETF Store President Nate Geraci said Monday on “ETF Edge.” “Because, keep in mind, there has been over a decade of pent-up demand here, because the first Bitcoin ETF application was back in 2013, and this has been talked about ad nauseam for the past decade. So I think that's what caused the problem.'' There's a lot of pent-up demand. ” The relentless bull market was the second catalyst. “Bitcoin itself is clearly performing very well,” Geraci said, noting that the cryptocurrency has more than doubled this year. “That obviously helps. There was a lot of coverage in this area that helped us attract investor interest. So all the ingredients were there. It really was the perfect recipe.” Looking to 2025 Bitcoin Backers' Hopes The Bitcoin and ETF industries expect even more capital to flow in 2025 due to two hopes. First, they want financial institutions to ease investment requirements and allow customers to own and trade Bitcoin. Second, they want a more friendly regulatory environment. “ETFs have become a liquidity vehicle for holding digital assets themselves,” Hartigan said on CNBC's “ETF Edge.” “It’s liquid, it’s regulated, and I think that really touts the benefits of ETFs. So to give the institutional market more access to digital coins, we need that.” I hope it's a good intermediary.''Donald Trump. The president-elect's announcement that venture capitalist David Sachs will become the “czar” of cryptocurrencies and his plans to nominate Paul Atkins as chairman of the U.S. Securities and Exchange Commission have made Bitcoin enthusiasts even more excited. We believe that a friendly regulatory environment will emerge. Atkins, a former Republican SEC commissioner, has advocated for greater regulatory clarity for the cryptocurrency market. “If only the SEC were more open-minded and forthright in addressing these various issues. [crypto] Companies, I think it's much better for things to happen here in the United States than outside of the United States,” Atkins said on the “Kibbe on Liberty” podcast in February 2023. In the podcast, Atkins expressed support for digital currencies. Not Controlled by a Government “Anything that is not controlled by a specific entity and is not centralized is a trustless type of product, where there are different miners and validators that verify different transactions. Will Bitcoin ETFs Overtake Gold ETFs in 2025? Spot Bitcoin ETFs currently have more than $100 billion in assets under management, and Geraci said there is a good chance that Bitcoin ETFs will overtake gold ETFs. Its assets are approximately $125 billion. [compared to $100 billion in spot bitcoin ETFs]”So it's not inconceivable to think that spot Bitcoin ETFs will surpass gold ETFs in the coming months. That would be surprising given the demand here,” Geraci added.
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