These Financial Institutions Have Purchased 3.3% of Bitcoin’s Supply in the Last Three Weeks
The introduction of Bitcoin exchange-traded funds (ETFs) has sparked conversations about the future of Bitcoin and its supply. While it hasn’t had an immediate impact on its price, the approval of Bitcoin ETFs has led institutional entities to start accumulating the digital asset.
Among the institutions involved in this accumulation is BlackRock, the world’s largest asset manager. This has raised hopes that the increasing participation of retail investors in Bitcoin ETFs will contribute to future price gains.
A recent report reveals that the combined 11 Bitcoin ETF applicants currently hold approximately 3.3% of the total circulating supply of Bitcoins. These applicants include well-known companies such as Grayscale, Fidelity, Franklin Templeton, and VanEck, among others.
According to data from Ycharts, there are currently 19.61 million Bitcoins in circulation. However, within the crypto industry, speculation is rife about the potential impact of the upcoming Bitcoin halving in April on both price and supply. The halving event, which occurs every four years, reduces the mining rewards and therefore decreases the rate at which new coins are created, resulting in a reduction of the overall available supply.
Despite the approval of Bitcoin ETFs, which was expected to drive up the price, Bitcoin’s value has actually declined by around 10% post-approval. This has led to some skepticism, with Gary Gensler, the Chair of the SEC, expressing irony in approving spot Bitcoin ETFs. He believes that such financial products contradict the decentralized principles of Bitcoin and could exacerbate speculation and volatility in the market.
As of now, the price of Bitcoin stands at $42,062.
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