KEY POINTS
- US spot Bitcoin ETFs collectively hold over 900,000 Bitcoins
- Some crypto users argued that there isn't much evidence to prove Satoshi Nakamoto holds over a million $BTC
- BlackRock is currently No. 3, behind Nakamoto and crypto exchange giant Binance
U.S. spot Bitcoin exchange-traded funds (ETFs) have swept the financial world since launching in January, and the most popular among them all, BlackRock's $IBIT, is maybe "on track" to overthrow $BTC creator Satoshi Nakamoto in the list of the world's top Bitcoin holders before year-end 2025.
Inflows overshadow outflows
Since launching over seven months ago, Bitcoin ETFs have seen red days, including last week, when the funds saw three consecutive days of over $100 million in net outflows, as per data from Farside Investors.
On the other hand, inflows into the funds, especially for $IBIT, have continued, suggesting steady interest in accumulating Bitcoins through the funds. A list posted by Shaun Edmondson shows that as of Monday, the combined holdings of U.S. spot Bitcoin ETFs – excluding that of Grayscale's GBTC – stand at 909,700.
Can $IBIT beat Satoshi?
Senior Bloomberg ETF analyst Eric Balchunas reposted the said list, saying he didn't realize sooner that U.S.-listed $BTC ETFs "are on track to pass Satoshi in Bitcoin held in October."
Didn’t realize US ETFs are on track to pass Satoshi in bitcoin held in October. BlackRock alone is already #3 and on pace to be #1 late next year, and will likely stay there for a very long time Ht @EdmondsonShaun pic.twitter.com/QGsO00zrxp
— Eric Balchunas (@EricBalchunas) August 12, 2024
According to Edmondson's list, Nakamoto, the pseudonymous creator of the world's largest cryptocurrency by market value, holds 1.1 million Bitcoins. Crypto exchange behemoth Binance is second in line with over 550,000 $BTC.
Finally, investment giant BlackRock is in third place, with 347,767 Bitcoins held. For Balchunas, who has been tracking the activity of $BTC ETFs and other non-crypto ETFs over the years, BlackRock is now "on pace to be #1 late next year." He went on to project that BlackRock may retain its top spot "for a very long time."
Crypto users react
There have been mixed reactions among crypto users on X over the list. Some pointed out that there is no clear evidence that Nakamoto actually holds a million Bitcoins. Crypto derivatives exchange BitMEX agrees that there was a dominant miner that mined possibly up to 700,000 $BTC alone, but is not sure whether it was the digital currency's creator.
Crypto influencer Kris Kay believes Nakamoto holds "much more" Bitcoins, noting that there is no way to track the wallets he used to mine in the first two to three years since the coin's conception.
One user said BlackRock's Bitcoin holdings defeat "the whole purpose of 'decentralization,'" the key reason why many people have jumped ship and embraced cryptocurrencies. Another user shared the same concern, saying the accumulation of $BTC through the ETFs could make the digital asset "more and more centralized over time."
For Spencer Hakimian, the founder of Tolou Capital Management, the list only proves how owning Bitcoin through an ETF was a "game changer," considering the reluctance of institutional traders regarding holding the asset on exchanges.
People underestimate how reluctant institutions were to own Bitcoin on exchanges. Owning via ETF is a game changer. Allows risk averse institutions to own Bitcoin finally. Game changer.
— Spencer Hakimian (@SpencerHakimian) August 12, 2024
Another user was concerned that the Chinese government is on the list. "U.S. government and Congress should take a look at this. Do we want China to hold more $BTC than the U.S.?" the user said.
BlackRock HODLs
Balchunas' predictions came following a broad financial market crash earlier this month that sent Bitcoin and crypto prices tumbling. At one point, the world's first decentralized digital asset crashed to $49,000, triggering hundreds of millions in liquidations across the crypto board.
Blockchain analytics leader Arkham Intelligence revealed that BlackRock, MicroStrategy, Grayscale, and Fidelity all HODLed throughout the market crash. Interestingly, the said four "diamond hand" $BTC holders are on Edmondson's top 11 list of the world's biggest Bitcoin holders.
