Investment vehicles tied to Bitcoin have now accumulated more than 7% of the cryptocurrency’s fixed 21 million coin cap, with BlackRock’s U.S.-listed ETF standing out as the single largest holder. In total, exchange-traded products (ETPs) linked to Bitcoin collectively manage around 1.47 million BTC, according to recent data.
The majority of these holdings come from U.S. exchange-traded funds, which together account for over 1.29 million BTC spread across 11 different funds as of August 31, data from the X account HODL15Capital revealed.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) leads the market with 746,810 BTC under management, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) holds nearly 199,500 BTC, ranking second.
Demand Shows Signs of Cooling
Despite these large totals, interest in Bitcoin-based investment products has slowed. In August, Bitcoin ETPs worldwide recorded net outflows of approximately $301 million. By contrast, Ethereum-focused funds saw robust inflows, pulling in around $3.95 billion over the same period, according to CoinShares.
This shift is partly driven by large Bitcoin holders, or “whales,” reallocating capital into Ether. On Monday, one such whale sold 4,000 BTC in exchange for 96,859 ETH within just 12 hours, ending up with a position valued at $3.8 billion in Ether. Blockchain analytics firm Arkham reported that nine major whales recently locked in Bitcoin profits and redirected about $456 million into Ethereum.
Broader Market Context
Historically, September has been a weak month for Bitcoin’s performance, and this year appears no different. Meanwhile, gold prices continue to climb, offering investors an alternative hedge.
Regulatory uncertainty also weighs on sentiment. The U.S. Securities and Exchange Commission (SEC) currently has 92 crypto-related ETF applications pending approval. Among the most closely watched are funds tied to Solana (SOL) and XRP (XRP), with final decisions expected in October.
Well-known pseudonymous analyst PlanC cautioned that Bitcoin’s long-term path to a potential $1 million valuation may face significant obstacles.
Adding to this, research firm Delphi Digital suggested that if the Federal Reserve cuts interest rates after a price rally, Bitcoin could see a sharp decline. However, if the asset remains relatively inactive leading up to the Fed’s decision, its price may hold steady instead.