What Does It Mean That ETFs Already Hold 6% of the Supply?
1.2 million BTC in just 8 months
Since Bitcoin spot ETFs were approved in January 2024, large institutional funds have been buying BTC at an impressive rate. To date, they have already accumulated over 1.2 million coins, equivalent to 6% of the total in circulation.
This is not only historic, but it could change the rules of the game forever.
What is happening?
ETFs like those from BlackRock, Fidelity, ARK, and Grayscale allow traditional investors to buy BTC without having to manage private keys or use crypto exchanges. This has opened the door to billions in new capital flows into Bitcoin.
But what many are not seeing is the following:
Those BTC are locked in digital vaults. They are not being used or sold. They are leaving active circulation.
Why does this matter?
When supply decreases and demand increases, the price tends to rise. That's basic economics.
But in this case, we are talking about:
A limited supply of 21 million BTC, of which over 93% have already been mined.
A new halving already occurred in 2024, reducing the issuance of BTC to just 3.125 per block.
And now, the strong hands are hoarding non-stop.
This leaves fewer BTC for traders, retail holders, and new entrants.
What could happen to the price?
Although the price of BTC currently hovers around $115,000, many analysts believe that this type of quiet accumulation could be the foundation for a new bullish cycle stronger than the previous one.
Remember: in past cycles, when liquid supply decreased, parabolic moves quickly followed.
In summary
Wall Street already controls more than 6% of the available BTC.
They are buying for the long term. Not to trade, but to hold.
Each ETF launched generates more buying pressure.
Holding BTC is becoming mandatory for funds and institutions.
If you don't have it, it might be harder to get it at a good price in the future.
Final reflection
What will happen when ETFs hold 10%? Or 15%?
If you, who are here early, do not have at least a fraction, those who are buying now with billions may not want to sell it to you later.
This is a key moment. Don't look at it from the banking perspective.