Spot Bitcoin ETF products trading around the world have continued to acquire BTC at a very fast pace. At the moment, about 34 spot Bitcoin ETFs are holding more than 1 million units of the coin in their respective portfolios.
The Bitcoin ETF Supply Crunch
Bitcoin is an asset with a fixed supply cap of 21 million coins. The launch of spot Bitcoin ETFs in different countries marked a paradigm shift that validated the categorization of the coin as a financial asset. When the United States joined the game in January, the paradigm shifted massively with Wall Street financing.
At the moment, the new asset class now sees traditional financial investors gaining exposure to Bitcoin through these ETFs. According to a chart presented by the analytics platform HODL15Capital, as of June 7, the total number of Bitcoin held by the 11 ETF issuers in the US comes in at 883,978.Â
Global Bitcoin ETFs as of 6/7/2024 👇 pic.twitter.com/ll66xxDe4k
— HODL15Capital 🇺🇸 (@HODL15Capital) June 9, 2024
Of the US cohort of spot Bitcoin ETF issuers, BlackRock holds the largest BTC in holding at 304,995 units. The smallest holder is Hashdex with a total of 178. Excluding Grayscale Investments, these ETFs hold a total of 599,397 BTC.
On the International front, Canada’s Purpose Bitcoin ETF holds 26,987 BTC as of June 7. Germany’s ETC Group Physical Bitcoin and Channel Islands CoinShares Physical Bitcoin make up the top 3 outside the US. These ETFs hold 20,658 BTC and 14,187 BTC respectively.
Impact on Bitcoin Price
As the accumulation of Bitcoin by these spot BTC ETF products grows, the more likely the coin is to get drained from cryptocurrency exchanges. Complemented by the limited supply since the Bitcoin halving event, the chances of a price surge in the long term are high.
At the moment, Bitcoin is in a latent mode as major fundamentals are not driving a corresponding change in price. The coin is currently changing hands for $69,363, up by 0.60% in 24 hours per data from CoinMarketCap. With a total of 1,031,973 BTC or close to 5% of total supply in ETF issuers’ coffers, a corresponding price rebound might just be around the corner.
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