US spot Bitcoin exchange-traded funds (ETFs) are on the brink of a significant achievement. They are set to outpace the Bitcoin holdings of Satoshi Nakamoto, the cryptocurrency’s mysterious creator.
Bitcoin ETFs Approach Record-Breaking BTC Holdings
Since their debut in January, US Bitcoin ETFs have experienced remarkable growth. As of now, they hold approximately 1.081 million Bitcoin. This is just shy of Satoshi Nakamoto’s estimated 1.1 million BTC stash, which represents about 5.68% of Bitcoin’s total supply.
Bloomberg Senior ETF Analyst Eric Balchunas revealed that ETFs are now 98% of the way to surpassing Nakamoto. He speculated this milestone could be reached by Thanksgiving if current inflow trends persist.
Institutional Interest Drives Growth
Recent data shows that inflows into Bitcoin ETFs surged by 97% week-on-week, reaching $3.3 billion in the past five trading days. BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, contributing $2 billion. The launch of options trading for Bitcoin ETFs is thought to be a major draw for institutional investors, further boosting demand.
Bitcoin ETFs vs. Gold ETFs: The Next Race
Bitcoin ETFs are also closing in on gold ETFs in total assets under management (AUM). Currently, gold ETFs manage $120 billion, while Bitcoin ETFs hold $107 billion. If Bitcoin’s inflows continue, ETFs could surpass gold by Christmas, marking another milestone in cryptocurrency’s competition with traditional assets.
Bitcoin’s Exceptional Performance in 2024
This surge aligns with Bitcoin’s remarkable performance this year. The cryptocurrency has gained nearly 160% since January and is trading near $100,000. Its market capitalization has grown to $1.91 trillion, surpassing silver and corporations like Saudi Aramco.
BTC vs. Gold: The Bigger Picture
While Bitcoin ETFs are making headlines, BTC still lags behind gold in total market capitalization. Gold remains the world’s largest asset, with a valuation exceeding $18 trillion. However, Bitcoin’s continued momentum may further close this gap as institutional interest rises.