Bitcoin ETFs Hold Only a Small Fraction of BTC’s Supply, Says CoinGecko Researcher
A researcher at CoinGecko has found that Bitcoin exchange-traded funds (ETFs) currently hold a relatively small amount of the cryptocurrency. According to Lim Yu Qian’s analysis, BTC ETFs collectively hold around 793,034 BTC, which represents just 3.4% of Bitcoin’s total maximum supply. This figure includes the holdings of Grayscale Bitcoin Trust (GBTC), which is awaiting approval from the US Securities and Exchange Commission (SEC) to convert into a spot BTC ETF. Without GBTC, Bitcoin ETFs only represent 0.8% of the total maximum supply. However, if spot Bitcoin ETFs are approved in the US, it is expected that investor demand will increase.
Predictions for Approval of Spot BTC ETFs
James Seyffart, an ETF research analyst at Bloomberg Intelligence, predicts that the first spot BTC ETFs will be approved next month. Bitwise, the world’s largest crypto index fund manager, recently released a commercial for a spot Bitcoin ETF in anticipation of regulatory approval. Bitwise is one of several firms that have filed for a spot BTC ETF with the SEC.
Hot Take: Traditional Finance Could Influence Bitcoin’s Future
Bitcoin ETFs currently hold only a small fraction of the cryptocurrency’s supply. However, if spot BTC ETFs are approved in the US, it is expected that investor demand will increase significantly. This could potentially lead to traditional financial institutions having an outsized influence over Bitcoin in the future. The approval and adoption of Bitcoin ETFs by mainstream finance could mark a significant milestone for the cryptocurrency and open up new avenues for investment and participation in the market.
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