This article is available in Spanish.
Bitcoin (BTC) exchange-traded funds (ETFs) have collectively acquired more than one million BTC in less than a year since their launch, reflecting strong demand for this digital asset among investors.
Bitcoin ETFs surpass the one million BTC milestone
According to one graphic Shared by crypto analyst Ali Martinez on
As a reminder, after much deliberation, the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January earlier this year. To say that Bitcoin ETFs have been a runaway success is not an exaggeration.
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Bitcoin ETFs have recorded cumulative total net inflows of $24.15 billion to date. Martinez added that the total value of BTC held by these ETFs currently stands at approximately $70 billion.
From a price perspective, BTC has risen from around $41,900 on January 8 to the current price of $68,941, marking an increase of almost 65%. During this period, BTC reached an all-time high (ATH) of $73,737 in March.
With over a million BTC held in Bitcoin ETFs, roughly 5% of the total supply of 21 million BTC is locked up in these financial products, reinforcing Bitcoin’s scarcity narrative.
Notably, asset manager BlackRock’s IBIT spot BTC ETF leads the market, with net assets of approximately $30 billion. Grayscale’s GBTC follows with $15.22 billion, and Fidelity’s FBTC is third with $10.47 billion in net assets.
The growing interest in Bitcoin ETFs is also highlighted in a recent CoinShares reportwhich showed that digital asset investment products attracted inflows of more than $2.2 billion last week.
CoinShares attributed the recent surge in crypto product inflows to the possibility of a Republican victory in the upcoming US presidential election on November 5.
Interestingly, higher inflows were seen at the beginning of the week, while outflows picked up toward the end as Democratic candidate Kamala Harris’ chances of winning improved.
At the time of writing, the decentralized prediction markets platform is Polymarket shows Harris has a 41.6% chance of winning the presidency, while Republican candidate Donald Trump remains the favorite with a 58.5% chance.
Trump Wins to Profit Crypto, Experts Believe
While voters’ opinions on other policies may be more evenly divided, the general consensus on crypto seems to be that a Trump victory might advantage BTC and other digital assets.
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Earlier this month, JPMorgan said declared that retail investors increasingly view BTC as a “demeaning trade” to protect the purchasing power of their assets amid inflation, and that a Trump victory could provide “additional upside” for BTC.
That said, Kamala Harris, Biden’s current vice president, is reportedly taking a fresh approach to digital assets, in contrast to the perceived cautious stance of the current administration. Whether this will increase her popularity among crypto-focused voters remains to be seen.
At the time of writing, Bitcoin is trading at $68,941, up 0.8% in the past 24 hours. According to CoinGecko factsBitcoin’s dominance stands at 56.7%.
Featured image from Unsplash, charts from X and Tradingview.com