The Spot Bitcoin exchange-traded fund (ETF) has experienced one of its strongest months since its inception in January 2024, with inflows exceeding $3 billion so far in October.
This surge in demand led ETF issuers to purchase Bitcoin at levels far exceeding the newly mined supply.
US Spot Bitcoin ETF gains 45,000 BTC in October
During the trading week of October 21-25, 11 Spot Bitcoin ETFs collectively purchased 15,194 BTC, nearly five times the 3,150 BTC mined during the same period, according to HODL15Capital data. do. This week's inflows totaled approximately $1.83 billion, reflecting the strong demand that has driven unprecedented levels of BTC acquisition by ETF issuers.
“If you sold Bitcoin today, this week, or this year, it is being bought by an ETF.Demand for Bitcoin ETFs in the US far exceeds new supply, but the weak are willing to buy BTC on a daily and weekly basis. ,” HODL15 Capital wrote.
Read more: What is a Bitcoin ETF?
Since early October, these issuers have collectively purchased 45,557 BTC. This was the fourth-highest month in BTC acquisitions since Spot ETFs were approved on January 10, 2024.
Meanwhile, active purchases brought the ETF issuer's total BTC holdings to nearly 1 million BTC. As of October 25th, Bitcoin ETF issuers held a total of 977,122 BTC, just 22,878 BTC short of the 1 million BTC threshold. BlackRock holds the largest BTC reserves, holding approximately 403,714 BTC, which is approximately 2% of the total Bitcoin supply.
Notably, if the ETFs' current accumulation rates continue, their combined holdings could soon exceed the holdings of Satoshi Nakamoto, the pseudonymous founder of Top Assets. It is.
Eric Balchunas, an ETF analyst at Bloomberg, said, “Even though it's been less than 10 months since its launch, the ETF is 97% of the way to holding 1 million BTC and 87% of the way to overtaking Satoshi as the largest player. There is,” he said.
Read more: How can I invest in Ethereum ETFs?
Market participants note that because ETF issuers currently hold a significant portion of the BTC supply, their influence on market liquidity and price stability is likely to increase.
In fact, as ETFs continue to accumulate top assets, they may be exposed to greater volatility risk during periods of high inflows or outflows, especially given that the supply of BTC is relatively fixed. Analysts warn that such concentration could lead to increased price sensitivity to market trends.
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