After nearly 10 years of failed applications, we saw a flurry of Bitcoin spot ETFs flooding the market in 2024. So far, it seems that the impact of the ETFs was not just to live up to the hype — but even trigger a radical shift in the collective evaluation of Bitcoin’s risk profile.
The market had good reasons to think this batch of ETF applications might have gone through in advance, but their effect on the market was unknown. The hype was undeniable, but there were still reasons to be cautious. Critics could have argued that institutions were already quite active on Bitcoin, and could already use futures ETFs — they just didn’t necessarily want to.
A few months in, the results are clear. Substantial ETF flows have been one of the primary drivers of the current run up in BTC price, pushing it past its previous all time high.
In a short span of a little over two months, Bitcoin spot ETFs have collectively reached over $57B in Assets Under Management (AUM), or about 830,000 BTC. To put this in perspective, the largest known holder of Bitcoin is Satoshi at around 1.1 million BTC. The 4 largest Bitcoin addresses holding over 100,000 BTC, which are cold storage wallets of known exchanges, still hold less Bitcoin than the ETFs.
A change in perception?
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