What happened?
Bitcoin exchange-traded products (ETPs) are now holding over 1.47 million BTC, which is about 7% of the fixed total supply of Bitcoin. The bulk of this is held by U.S.-based ETFs, with more than 1.29 million BTC across 11 funds. Global Bitcoin ETPs have added over 170,000 BTC to their books since the beginning of this year, equating to around $18.7 billion.
Who does this affect?
This development mainly affects investors in the cryptocurrency market, especially those invested in Bitcoin and those considering investing in Ethereum. Evidence of this shift is visible in recent outflows and whale activity suggesting that investors are moving into Ethereum ahead of expected ETF developments. Moreover, investor sentiment appears to have tilted away from Bitcoin with noted large holders shifting capital into Ether.
Why does this matter?
The market impact of this situation is significant as it reflects changes in investor sentiment and strategy within the cryptocurrency space. The fact that a sizable portion of Bitcoin’s total supply is held by ETPs indicates the growing influence of these investment instruments. Additionally, the observed shift from Bitcoin to Ethereum suggests that Ethereum could experience considerable growth. It’s also notable that changes in Fed policy could cause short-term volatility in the Bitcoin market.