Bitcoin ETFs Poised to Surpass Satoshi’s Holdings, Analysts Say
Within a short span of less than twelve months, U.S. Bitcoin exchange-traded funds (ETFs) have amassed a total of more than 1 million BTC. This monumental achievement has sparked conversations about the possibility of these ETFs exceeding the holdings of Bitcoin’s mysterious creator – Satoshi Nakamoto. Eric Balchunas, an esteemed ETF analyst at Bloomberg, had initially predicted that this milestone would be reached around mid-December.
However, the recent single-day acquisition of 12,127 BTC by BlackRock, as reported by Lookonchain, has expedited this timeline significantly. Balchunas expressed his surprise at this rapid accumulation, indicating that if this pace were to continue, the ETFs could surpass Satoshi in less than a fortnight. He humorously compared this frenetic pace to legendary competitive eater Joey Chestnut, questioning its sustainability.
Currently, BlackRock holds a substantial 429,185 BTC, valued at approximately $30.8 billion. Collectively, U.S. Bitcoin ETFs manage assets worth $70.86 billion, equivalent to 5.12% of the total Bitcoin market cap, based on data from Soso Value.
For perspective, Satoshi Nakamoto is believed to possess around 1.1 million BTC, valued at $76 billion in today’s market.
Is the Influx into ETFs Slowing Down?
Earlier reports from CryptoCrypto highlighted that as of October 30, BlackRock’s IBIT witnessed its largest daily influx since January, a trend that persisted with triple-digit net inflows recorded daily from October 23 onwards.
Nevertheless, on October 31, the total net inflows 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.
Other ETFs experienced either outflows or remained stagnant, coinciding with Bitcoin’s drop below the $70,000 mark.
Despite this minor setback, Balchunas shared that IBIT managed to attract more investment than the overall total of 13,227 ETFs worldwide in the past week. This accomplishment stands out significantly for an ETF that is still in its infancy.
Industry Experts Weigh In
Industry experts took notice of IBIT’s remarkable performance. Nate Geraci, President of the ETF Store, expressed his views on this impressive feat, calling it a lucrative investment opportunity.
Geraci emphasized that the $70 billion held by BTC ETFs now exceeds 50% of the $130 billion amassed by gold ETFs since their inception in 2004, achieved within a mere 10 months of their launch in 2024.
Quinten Francois, Co-founder of WeRate, echoed this sentiment, pointing out that Bitcoin ETFs had attracted more investments in two days than the Gold ETF amassed during its entire inaugural year.
Bitcoin Celebrates its 16th Anniversary
As the Uptober rally drew to a close, Bitcoin commemorated its 16th anniversary since the release of Nakamoto’s seminal whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” This milestone marked the inception of a revolutionary decentralized digital currency and heralded the advent of the cryptocurrency era.
Coincidentally, Bitcoin slipped below the $70,000 threshold on its anniversary, settling at $69,821 at present, reflecting a 3.33% decline over the past 24 hours.
While the downturn may have unnerved some investors, it presents an intriguing opportunity for institutional investors to capitalize on this dip and potentially overtake Satoshi Nakamoto sooner than anticipated.
This strategic move could accelerate the trend towards institutional dominance in a space originally intended to be decentralized by Nakamoto.