In a recent milestone underscoring the growing significance of exchange-traded funds (ETFs) within the crypto industry, US spot Bitcoin ETFs have collectively amassed more Bitcoin than Satoshi Nakamoto. Combining the holdings of all these ETFs, the figures currently stand at a staggering 1,104,534 BTC, slightly leapfrogging Satoshi’s estimated 1.1 million Bitcoin holdings.
The Rise of Institutional And Retail Bitcoin Investment
Ever since spot Bitcoin ETFs were approved in January, the Bitcoin ecosystem has witnessed a gradual shift in “ownership” towards institutional and retail investments. These investment vehicles have recorded unprecedented levels of success, generating over $33 billion in net inflows. Retail investors are responsible for most of the demand, as reported by Binance, with BlackRock’s IBIT leading in assets under management, closely followed by Grayscale’s GBTC and Fidelity’s FBTC.
On Thursday, December 5, Bitcoin historically surged past the $100,000 mark, causing the total assets under management for these ETFs to move beyond $109 billion. In addition, an impressive $2.35 billion in net inflows was recorded in the past week.
Corporate Giants and National Holdings
Although Satoshi Nakamoto retains his place as the topmost individual Bitcoin investor, corporate entities have since entered the fray and morphed into significant players in the Bitcoin ecosystem. MicroStrategy stands out as the corporate leader with 402,100 BTC, valued at over $40 billion. The company’s choice to adopt Bitcoin as its primary treasury asset in 2020 has proven pivotal, encouraging other firms like Marathon Digital Holdings (MARA) and Worksport to move along this line.
On the governmental front, the United States has established itself as the largest nation-state Bitcoin holder, maintaining 208,109 BTC worth $21 billion from seized funds, positioning itself ahead of China and the United Kingdom.
Election Aftermath: Bitcoin’s Remarkable Rally and Institutional Momentum
It is not far-fetched to insinuate that the recent US presidential elections have significantly affected the general market sentiment, especially with Bitcoin. There has been a generally positive market response to potential regulatory changes under the Trump administration, with traders hoping for a more crypto-friendly regulatory environment.
This has seen cryptocurrencies like Bitcoin increase by over 130% in the past year, reaching an all-time high of over $103k.
Marathon Digital’s assertive acquisition strategy shows how much confidence institutional investors place in Bitcoin’s recent performances. The company affirmed unwavering faith in Bitcoin’s long-term potential by purchasing 1,300 BTC (worth $130.66 million) in just seven hours and then acquiring another 1,423 BTC.
Looking Ahead
As Bitcoin continues to trade near its historic $100,000 milestone, the cryptocurrency sphere appears to be entering a new era of mainstream acceptance. Key factors such as Spot ETF success, corporate accumulation, and favorable regulatory expectations hint at a market comfortable enough for institutional and retail investors to test new waters.
The milestone US spot Bitcoin ETFs achieved goes beyond mere figures and represents a symbolic shift in Bitcoin’s journey from a decentralized experiment to a mainstay investment vehicle.
