How will the price of BTC react when ETFs hold $26.8 billion in Bitcoin?
Newly launched Bitcoin ETFs (exchange-traded funds) in the United States have accumulated a significant portion of BTC.
Indeed, the rapid accumulation rate highlights the growing influence of these ETFs in the US, providing investors with new ways to gain exposure to the world's major cryptocurrency.
Bitcoin ETF Holdings
According to data from CryptoQuant, the combined holdings of Bitcoin ETFs in the US now exceed 638,900 BTC, amounting to $26.8 billion.
Greyscale's Bitcoin Trust, GBTC, is leading the way boasting 566,973 BTC worth over $23 billion. However, since its inception, the financial product has experienced significant outflows, with approximately $5.5 billion in assets being divested. Observers attribute these outflows to loss-making FTX and investors taking advantage of earlier arbitrage opportunities.
The more we think about it and the more we talk to people, the fewer GBTC withdrawals can go to the nines, because most of them are FTX and discount traders. Also, the flows are almost perfectly proportional to the firm's size, indicating flows due to reach/distribution/speed,” said Eric Balchunas, senior ETF analyst at Bloomberg.
Read more: What is a Bitcoin ETF?
In contrast, recent ETFs show a surprising trend in Bitcoin stocks. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Trust (FBTC) have gained over 20,000 BTC respectively. This took their assets under management to over $1 billion in the first six trading days.
Balchunas also contributed to the performance of BlackRock's ETF. He pointed out that IBIT accounts for 15 percent of all ETFs by assets and is at the top 2 percent when measured by daily volume. Moreover, ETF issuers including Bitwise, ARK 21 Shares, Invesco/Galaxy, Valkyrie, VanEck, Franklin Templeton and WisdomTree together hold about 23,000 BTC in balance.
A list of Bitcoin ETF issuers in the US and their BTC holdings:
BTC price prediction
Bitcoin's price performance has shown a relative block since the ETF's launch. Analysts, however, predict a reversal of this trend, anticipating improved market conditions and expected selling pressure from GBTC.
Santiment, a leading blockchain analyst, highlighted bullish signals on the Bitcoin Relative Strength Index (RSI) and MVRV. In the year The company saw these signs when the cryptocurrency rose above the $42,000 threshold on January 19.
Also, a technical analyst under the name Cryptokon added to the optimism. According to his analysis, Bitcoin could reach $130,000 by the end of 2025.
Based on the +/- 21 day half cycles theory date from November 28, 2025, here are the prices for the top 3 bands: Layer 7: 180k. Layer 6: 130k. Layer 5: 94K 130k layer 6 price along with 5 other price tests for the cycle top,” explained the analyst.
Read more: Bitcoin price prediction for 2024/2025/2030
However, the analyst's history suggests that Bitcoin may reach $180,000 instead, a more cautious approach is recommended due to the possible failures of these pricing models.
Disclaimer
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