Following the aftermath of the recent U.S. Presidential election, the market for Bitcoin [BTC] has experienced a notable uptick, with traditional Bitcoin exchange-traded funds (ETFs) receiving a significant surge of funds.
As BTC’s value continues to approach the $100,000 milestone, the momentum is reflected in the ETF sector as well.
Update on Bitcoin ETFs
Based on data from Farside Investors, Bitcoin ETFs received an impressive $490.3 million in new capital on the 22nd of November, showcasing a notable extension of the positive trend.
Collectively, by the 21st of November, BTC ETFs had accumulated over $1 billion in fresh investments. This signified a strong investor interest in gaining exposure to the primary cryptocurrency amidst a wave of bullish sentiments.
Amidst the influx of capital into Bitcoin ETFs, BlackRock’s IBIT emerged as the top performer, attracting $513.2 million on the 22nd of November and $608.4 million on the 21st of November.
Following closely behind is Fidelity’s FBTc, consolidating its market position. However, not all Bitcoin ETFs are witnessing growth, as evidenced by Grayscale’s GBTC, which experienced outflows of $67.1 million on the 22nd of November.
Could they Surpass Satoshi Nakamoto’s Holdings?
Despite this, the collective inflows into traditional Bitcoin ETFs are generating buzz, with conversations surfacing about these funds edging closer to a significant milestone of becoming the largest Bitcoin holders globally.
Data indicates the potential for them to surpass even the enigmatic Satoshi Nakamoto while also nearing the total net assets of gold ETFs.
Addressing this, a senior ETF analyst at Bloomberg, Eric Balchunas, remarked,
“U.S. spot ETFs are now 98% on the way to exceeding Satoshi as the world’s largest holder. My estimate around Thanksgiving seems on track.”
He further added,
“If the upcoming three days mirror the flow of the past three days, it’s almost certain. With assets under management (AUM) at $107 billion, they are only $23 billion behind gold ETFs, with a good chance to surpass by Christmas.”
The Journey so far
Since their launch in January, traditional U.S. Bitcoin ETFs have witnessed rapid growth.
Based on recent estimates by crypto analyst HODL15Capital, these funds collectively hold approximately 1.081 million BTC, bringing them remarkably close to Satoshi Nakamoto’s speculated 1.1 million Bitcoin holdings.
Satoshi Nakamoto, the mysterious Bitcoin creator, is believed to possess around 5.68% of the total Bitcoin supply, with holdings valued at over $100 billion.
If Nakamoto were an active individual, these substantial holdings would position them among the wealthiest individuals globally.
The Outlook for 2024 and Bitcoin
Undoubtedly, Bitcoin’s exceptional performance in 2024 has solidified its status as a prominent player in the financial realm.
With a 160% surge since the beginning of the year, BTC is now nearing the $100,000 mark, while its market capitalization of $1.91 trillion surpasses that of silver and major corporations like Saudi Aramco.
Notwithstanding this remarkable progress, Bitcoin still lags behind gold, the world’s leading asset, with a market cap exceeding $18 trillion.
These trends underscore Bitcoin’s increasing significance while highlighting its ongoing journey to compete with traditional assets such as gold for the top position.