Bitcoin Exchange-Traded Funds Expected to Surpass Satoshi’s Holdings in Less Than a Fortnight, Analysts Say
In under twelve months from their launch, Bitcoin ETFs in the United States have cumulatively acquired more than 1 million BTC. This development is noteworthy as Senior ETF analyst at Bloomberg, Eric Balchunas, recently forecasted that these ETFs could exceed the holdings of Bitcoin’s mysterious creator – Satoshi Nakamoto. Earlier predictions had suggested this milestone would be reached by mid-December.
However, a sizable single-day purchase of 12,127 BTC by BlackRock, according to Lookonchain data, has expedited this timeline. Balchunas responded to this significant acquisition, mentioning, “Given the current pace, they will surpass Satoshi’s holdings in less than a fortnight. However, it remains questionable whether they can sustain this high level of accumulation.”
As of the latest update, BlackRock reportedly holds 429,185 BTC, amounting to approximately $30.8 billion.
Collectively, U.S. Bitcoin ETFs now oversee assets valued at $70.86 billion, accounting for 5.12% of Bitcoin’s total market capitalization. These figures are sourced from data provided by Soso Value.
For comparison, Nakamoto is believed to possess around 1.1 million BTC, currently valued at $76 billion.
Are Bitcoin ETF Inflows Slowing Down?
Earlier, CryptoCrypto reported that on 30th October, BlackRock’s IBIT recorded its largest single-day inflow since January, following a streak of daily triple-digit net inflows since 23rd October.
Yet, by 31st October, daily net inflows had dropped to $32.14 million. Notably, only IBIT and the CoinShares Valkyrie Bitcoin Fund ETF (BRRR) registered inflows of $318.80 million and $1.89 million, respectively.
Several other ETFs either experienced outflows or did not see any inflows during this period. Interestingly, this decline coincided with Bitcoin’s drop below the $70,000 level.
Nevertheless, Balchunas disclosed that IBIT managed to attract more capital within the last week than the combined total of 13,227 ETFs globally. This achievement is particularly significant considering that IBIT is less than a year old.
Insights from Industry Executives
The remarkable performance of IBIT did not escape the attention of industry experts. Nate Geraci, President of the ETF Store, shared his viewpoint, referring to it as a “money-making machine.”
Geraci pointed out that the $70 billion in assets under BTC ETFs’ management surpassed the $130 billion held by gold ETFs since their launch in 2004 – achieved within just ten months of their introduction in 2024.
Quinten Francois, Co-founder of WeRate, echoed similar sentiments, noting that Bitcoin ETFs had attracted more inflows in the last two days than Gold ETFs amassed throughout their entire first year.
16-Year Anniversary for Bitcoin
Meanwhile, the Uptober rally concluded on the 16th anniversary of Bitcoin, which commemorates the release of Nakamoto’s seminal whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This historic event laid the groundwork for decentralized digital currencies and the era of cryptocurrencies.
Interestingly, Bitcoin dipped below the $70,000 threshold on its anniversary, currently priced at $69,821, indicating a 3.33% decline over the past 24 hours.
While this downturn may have disappointed some, it raises an intriguing question – Could this be an opportune moment for institutional investors to capitalize on the price drop and potentially surpass Nakamoto’s holdings sooner than anticipated?
Such a scenario could expedite the transition towards institutional dominance in a sector originally conceived by Nakamoto as decentralized.