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US bitcoin Spot ETFs have significantly transformed both bitcoin and the broader crypto industry. These ETFs have seen their value and holdings grow tremendously since their launch in January 2024. <a target="_blank" href="https://bitcoinist.com/investors-propel-bitcoin-etfs-to-mass-adoption/” target=”_blank” rel=”nofollow”>breaking multiple ETF records in traditional finance.
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As things stand, US Spot bitcoin ETFs have now overtaken the elusive btc creator Satoshi Nakamoto as the largest bitcoin holder.
A historic milestone for bitcoin ETFs
US bitcoin Spot ETFs have reached a notable milestone, becoming the largest holder of the major currency. Currently, the 12 US spot bitcoin ETF providers collectively hold 1,104,534 btc, representing around 5.62% of the entire bitcoin market capitalization. As such, they now have surpassed that of Satoshi Nakamoto stash of 1,100,000 btc, which has remained intact since its disappearance. Notably, these 1,100,000 btc, mined during the early days of bitcoin, have remained stagnant for over a decade.
The notable achievement of US Spot bitcoin ETFs is the result of steady inflows, which have <a target="_blank" href="https://bitcoinist.com/bitcoin-surpasses-100000-institutionals-cyptoquant/” target=”_blank” rel=”nofollow”>played an important role to push its price above the critical psychological threshold of $100,000. Recent data from SosoValue highlights that US btc Spot ETFs have recorded seven consecutive trading days of inflows, with the most recent increase of $376.59 million on December 6.
Curiously, this streak of entries extends far beyond the last seven business days. Over the past 40 trading days, US bitcoin Spot ETFs have seen inflows on 32 occasions, reflecting a sustained trend in investor interest. Total US spot bitcoin ETF holdings have strengthened significantly due to these steady inflows and are now valued at $112.74 billion based on the current price of the digital currency.
Implications of the growing dominance of ETFs
He growth of bitcoin spot ETFs as the largest btc holders points to a maturing market and reflects a shift in crypto's appeal to institutional investors. Institutional participation has increased considerably as ETFs offer a regulated means for investors to gain exposure to cryptocurrencies without owning them directly. This has led many market participants to suggest that btc could be becoming an asset for institutional holders and no longer for retail investors.
However, the momentum behind spot ETFs is unlikely to stop anytime soon. Influx is expected to continue to increase as adoption and approval increases in other major markets, such as the European market. However, it also raises the question of market influence and centralization of cryptocurrency holdings.
Interestingly, on-chain data shows that many long-term self-custody bitcoin holders have also chosen to transfer their assets to these spot ETFs to take advantage of their regulatory clarity.
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At the time of writing, the btc price is trading at $99,650 and is<a target="_blank" href="https://bitcoinist.com/dont-sell-your-bitcoin-yet-117000/” target=”_blank” rel=”nofollow”> still looking to record a decisive break above the $100,000 price level.
Featured image of Blue Trust, TradingView chart
