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US Spot Bitcoin ETFs Hold Over 6% of Circulating Supply With Assets Topping $102 Billion

Spot exchange-traded funds in the United States now custody 6.29% of all Bitcoin, removing one in sixteen coins from active exchange order books.

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US spot Bitcoin ETFs held $102.532 billion in assets as of September 18, accounting for 6.29% of the cryptocurrency's estimated $1.630 trillion market capitalization. The figures indicate that approximately one out of every 16 Bitcoin in existence is held in institutional cold storage by custodians to back ETF shares.

Since launching on January 11, 2024, Bitcoin ETFs have gathered $55.161 billion in net inflows over 32 months, averaging roughly $1.71 billion per month. Combined with $13.250 billion raised by spot Ethereum products, institutional crypto ETF inflows totaled $68.4 billion over the period.

Reaching a 10% share of total market capitalization would require an additional $60.5 billion in ETF holdings at current valuations, bringing the fund total to $163.0 billion. At the current pace of net inflows, the report calculates that reaching this milestone could take around 35 months, which would place it around mid-2029, though the timeline remains subject to inflow volatility.

The article highlights that increasing custodial holdings diminishes the liquid floating supply on exchange order books. If ETF holdings reach the 10% threshold, one in ten coins would be sequestered, potentially exacerbating price volatility during shifts in market demand.

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