Bitcoin ETPs Now Control 7% of Bitcoin’s Maximum Supply - Institutional Holdings Hit Staggering Milestone
Wall Street's crypto grab hits unprecedented levels as exchange-traded products swallow nearly one-tenth of Bitcoin's entire existence.
The Institutional Takeover
Traditional finance giants now command 7% of all Bitcoin that will ever exist—locking away digital scarcity while Main Street still debates whether crypto's a fad. BlackRock, Fidelity, and other ETF issuers accumulated this position in barely eighteen months, outpacing miner production by orders of magnitude.
Supply Shock Accelerates
With daily issuance dwindling post-halving, ETP demand creates a structural deficit that pushes prices upward. Institutions aren't just dipping toes—they're draining the pool faster than Satoshi ever anticipated.
Legacy finance finally found something scarcer than their imagination—and of course they're hoarding it.
Bitcoin demand slows
The demand for Bitcoin is slowing as crypto whales have rotated billions of dollars to Ether (ETH $4,385).
On Monday, a Bitcoin whale sold 4,000 BTC for 96,859 Ether over the span of 12 hours. The whale now holds $3.8 billion worth of Ether.
Blockchain data platform Arkham reported on Wednesday that nine whales have collectively booked a profit in Bitcoin and have rotated into ETH, with their buys amounting to $456 million.
The downturn in Bitcoin comes at a time when September has historically been the weakest month for the asset, while the price of Gold notches higher.
Another factor that is likely causing investors to pause betting on Bitcoin is that as many as 92 crypto-related ETFs are pending with the US Securities and Exchange Commission, with some of the most-anticipated funds tracking solana (SOL $202.67) and XRP (XRP $2.79) due for the regulators’ decision in October.
Pseudonymous Bitcoin analyst PlanC said that Bitcoin’s path to $1 million might face hurdles.
“Instead, we just keep grinding slowly upward to $1,000,000 over the next seven years in a very boring and underwhelming way,” PlanC said.
Research firm Delphi Digital said that Bitcoin might rally and then crash after the Federal Reserve cuts interest rates, provided the asset increases in price beforehand. Delphi added that the price of Bitcoin will remain stable if it doesn’t garner much activity leading up to the Fed rate cut.
