US Spot Bitcoin ETFs have significantly changed both Bitcoin and the broader crypto industry. The value and holdings of these ETFs have increased significantly since their launch in January 2024, breaking many ETF records in conventional finance.

As it stands, US Spot Bitcoin ETFs have overtaken BTC’s elusive creator, Satoshi Nakamoto, as the largest holder of Bitcoin.

A historic milestone for Bitcoin ETFs

US Spot Bitcoin ETFs have achieved a remarkable milestone by becoming the largest single holder of the top coin. Currently, 12 US Spot Bitcoin ETF providers hold a total of 1,104,534 BTC, which is approximately 5.62% of the total Bitcoin market capitalization. As such they have now surpassed Satoshi Nakamoto’s result a stash worth 1,100,000 BTC that has remained untouched since his disappearance. It is worth noting that these 1,100,000 BTC, mined in the early days of Bitcoin, remained stagnant for over a decade.

The remarkable achievement of US Spot Bitcoin ETFs is the result of consistent inflows of funds that played a significant role in raising the price above the critical psychological threshold of $100,000. SosoValue’s latest data highlights that US Spot BTC ETFs have seen inflows for seven consecutive trading days, with the most recent escalate of $376.59 million on December 6.

This streak of inflows is fascinating extends far beyond last seven trading days. Over the last 40 trading days, U.S. Spot Bitcoin ETFs have seen inflows 32 times, reflecting the continued trend of investor interest. Total U.S. Spot Bitcoin ETF holdings have grown significantly thanks to these steady inflows and are now valued at $112.74 billion based on the digital currency’s current price.

Consequences of the growing dominance of ETFs

The the rise of Spot Bitcoin ETFs as the largest holders of BTC indicates a maturing market and reflects the change in the attractiveness of the cryptocurrency for institutional investors. Institutional participation has increased significantly as ETFs offer investors a regulated means to gain exposure to cryptocurrencies without directly owning the cryptocurrency. This has prompted many market participants to suggest that BTC could become an asset for institutional holders rather than retail investors.

Nevertheless, the momentum behind Spot ETFs is unlikely to abate any time soon. The inflow is expected to continue to grow as adoption and approval increases in other major markets such as the European market. However, this also raises the issue of market influence and the centralization of crypto holdings.

Interestingly, on-chain data shows that many long-term self-held Bitcoin holders have also chosen to move their assets into these spot ETFs to take advantage of their regulatory transparency.

At the time of writing, BTC is trading at $99,650 and it is they still want to register a decisive break above the $100,000 price level.

Featured image from Blue Trust, chart from TradingView