• Bitcoin ETFs have accumulated 5% of the total BTC supply in less than 10 months.

  • Most ETFs purchase Bitcoin through OTC desks, preventing sudden price fluctuations in the market.

  • Analysts predict ETFs could hold up to 20% of Bitcoin’s supply in the coming months, potentially driving more institutional demand.

In less than 10 months since the launch of Bitcoin Exchange-Traded Funds (ETFs), these financial products have accumulated approximately 5% of the total BTC supply. Despite this accumulation, the overall price of Bitcoin has remained relatively stable since the ETF launch, sparking conversations about the impact of ETFs on the cryptocurrency market.

ETFs Continue Steady BTC Accumulation

According to Doctor Profit on the X Platform, data shows that Bitcoin ETFs have been acquiring notable amounts of BTC, and they have already secured 5% of the total Bitcoin supply in under a year. A key factor contributing to this accumulation is that ETFs predominantly purchase Bitcoin through over-the-counter (OTC) desks.  

https://twitter.com/DrProfitCrypto/status/1840580851165208968

These OTC purchases occur away from public exchanges, which can contribute to price stability, even when large quantities of Bitcoin are being bought. The absence of noticeable price changes may be explained by this discreet method of acquisition. Unlike retail traders buying through public exchanges, OTC purchases do not immediately impact market prices, allowing ETFs to gather Bitcoin without causing sudden price fluctuations.

Analysts Predict Further ETF Accumulation

Market experts suggest that the ETF-driven accumulation of Bitcoin is far from over. Projections indicate that in the coming months, ETFs could hold between 15% and 20% of the total Bitcoin supply. 

Data from SoSoValue indicates that Bitcoin ETFs recorded daily total net inflow reached $494.27 million, contributing to a cumulative net inflow of $18.80 billion as of September 27. Total net assets are valued at $61.21 billion, representing 4.71% of Bitcoin's market capitalization. 

Notable players include BlackRock’s IBIT, with $24.04 billion in net assets and a 1.85% BTC share, and Grayscale’s GBTC, holding $14.53 billion. IBIT posted a 1.49% daily price change, while Grayscale’s GBTC registered a 1.49% rise. ETFs are seeing steady price growth, with most funds recording daily gains between 1.39% and 1.57%.

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