David Edwards
Spot Bitcoin ETFs now control 5.33% of Bitcoin’s total supply, a milestone underscoring their growing role in the cryptocurrency market, according to a report by CryptoQuant analyst MAC_D. Physical Bitcoin ETFs have increased their holdings from 629,900 BTC on January 1 to 1.05 million BTC, reflecting an influx of 425,000 BTC over ten months. This rise boosted their share of Bitcoin’s total mined supply—from 3.15% to 5.33%—out of the 19.78 million BTC in circulation.
The accumulation aligns with market trends, particularly price surges in March and November. Data suggests a strong correlation between ETF inflows and Bitcoin price movements.
March Surge: $4 Billion Inflows and Record Trading Volume
US-listed spot Bitcoin ETFs experienced net inflows of $4 billion in March, according to Farside Investors. Trading volumes also soared, reaching $111 billion—nearly three times February’s $42 billion, per Bloomberg ETF analyst Eric Balchunas.
Bitcoin prices followed suit, climbing to over $73,000 during the period, fueled by heightened ETF activity.
November Rally: Trump’s Reelection Fuels Optimism
November saw another wave of significant inflows, spurred by Donald Trump’s reelection and the prospect of favorable crypto regulations. Bitcoin reached a historic high of $92,000 during this period.
US spot Bitcoin ETFs collectively logged $3.9 billion in net inflows in November. BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the dominant player, capturing over $3 billion in inflows and exceeding $40 billion in assets under management.
Mixed Weekly Performance
Despite notable gains, the US spot Bitcoin ETF market displayed mixed performance this week. While the funds saw $2.4 billion in net inflows during the first three trading days, Thursday and Friday witnessed $770 million in redemptions, leaving a net inflow of $1.6 billion for the week.
Implications for the Market
The increasing prominence of Bitcoin ETFs highlights a shift in how institutional investors approach cryptocurrency exposure. With spot Bitcoin ETFs now holding over 5% of Bitcoin’s total supply, their influence on price dynamics and market liquidity is likely to grow further.
