US Spot Bitcoin ETF Holdings Peak at 1.25M: What Do They Know?

• Since then, the volume of US BTC spot ETFs has surpassed Satoshi Nakamoto's holdings of 1.096 million coins.
• Wall Street analysts led by Bitwise CIO Matthew Siegel expect the price of BTC to rise to a new high before the end of the year.
• Traders are firmly convinced that the Fed will cut rates by 25 basis points in September amid pressure from policymakers.

The number of US spot Bitcoin ETFs has officially reached a new all-time high, with total assets reaching 1.25 million coins. The rapid growth, which has now taken the ETF's holdings past Satoshi Nakamoto's legendary 1.1 million coins, is being driven by Wall Street titans BlackRock and Fidelity.

According to the latest market data, BlackRock’s iShares Bitcoin Trust (IBIT) alone now holds 748,968 BTC, representing a whopping 59.9% of all bitcoin held in U.S. spot ETFs. The fund has become popular with large institutional players, attracting significant capital from the likes of Brown University, Abu Dhabi sovereign wealth fund Mubadala, and Harvard Management.

The institutional rush comes amid short-term market volatility as the price of bitcoin falls and traders await Fed Chairman Powell's speech in Jackson Hole .

The Fidelity Wise Origin Bitcoin Fund (FBTC) has seen $11.9 billion in total inflows, giving it about 199,798 BTC in assets at the moment. The rise of IBIT and FBTC coincided with the fall of Grayscale's GBTC fund, which once held over 620,000 BTC and now holds just 180,576 BTC.

Source: CryptoQuant

Top Reasons Bitcoin ETFs Are Attracting More Capital

This strong demand for Bitcoin is driven by a combination of growing recognition of the asset as “digital gold” and, crucially, a more favorable regulatory environment. Since the start of President Donald Trump’s second term, tighter regulation of cryptocurrencies has attracted significant capital.

Institutional investors have been investing heavily in Bitcoin since President Trump signed an executive order on August 7 titled “Democratizing Access to Alternative Assets for 401(k) Plan Investors.” This landmark order opened the door for pension funds to invest in Bitcoin and other digital assets, significantly expanding the pool of potential long-term institutional investors.

This is in stark contrast to the situation on Main Street, where retail Bitcoin buyer sentiment has fallen sharply, creating little divergence in the market for now.

What is the expected impact on price?

Growing demand for Bitcoin through BTC spot exchange-traded funds (ETFs) in the U.S. has exacerbated the supply-demand shock. According to CoinGlass market data analysis, the total supply of BTC on centralized exchanges has fallen from 2.95 million in the early days of BTC spot ETF trading to about 2.23 million at the time of writing.

Strong demand for bitcoin through spot bitcoin ETFs has helped the flagship coin outperform the overall altcoin market over the past year. Earlier this week, Bitwise CIO Matthew Siegel noted that the price of bitcoin is likely to rise to $180,000 by the end of the year, fueling a significant influx of funds from institutional investors.

Source: cryptonews.net