U.S. spot Bitcoin ETFs have claimed a historic title: the largest Bitcoin holders on Earth. Bloomberg ETF analyst Eric Balchunas reports that these ETFs now control 1,104,534 BTC, surpassing the legendary stash of Bitcoin creator Satoshi Nakamoto.
Satoshi’s wallets, untouched since Bitcoin’s creation, hold around 1.1 million BTC, placing him in second place for the first time in history.
To put it in perspective, other major holders like Binance control 633,103 BTC, MicroStrategy holds 402,100 BTC, and the U.S. government manages 198,109 BTC. These ETFs are not just changing the leaderboard; they’re rewriting Bitcoin’s story in real time.
Bitcoin nears $100K as Trump fuels ETF frenzy
The rapid accumulation by ETFs coincides with the ongoing crypto bull run, which saw BTC surge past $100,000 for the first time ever. It followed President-elect Donald Trump’s pledge to reverse Biden-era crypto crackdowns and replace regulatory hostility with policies that favor the industry.
Trump has even proposed building a strategic U.S. Bitcoin reserve. November saw $6.2 billion in net inflows to U.S. spot Bitcoin ETFs, shattering the previous record of $6 billion set in February. The approval of U.S. spot Bitcoin ETFs earlier this year was a turning point.
The Securities and Exchange Commission (SEC), under outgoing Chair Gary Gensler, had long resisted these products. It took a court ruling in 2023 to force the agency’s hand, paving the way for their launch in January. ETFs focused on Ether were approved shortly after. Meanwhile, Gensler is stepping down the same day Trump gets sworn in.
Risk-managed ETFs enter the market
As Bitcoin ETFs dominate the market, a new trend is coming: risk-managed Bitcoin ETFs. These products aim to make Bitcoin accessible to cautious investors by using derivatives to limit losses. These ETFs provide a “measured” way for people to gain Bitcoin exposure without facing its notorious volatility.
The push for risk-managed products follows the introduction of options contracts on existing spot Bitcoin ETFs earlier this month. These contracts allow fund managers to deploy buffered or covered-call strategies, reducing downside risk in exchange for capping potential gains.
Many top asset managers have already filed applications for these new ETFs. Calamos Investments plans to launch four managed-floor ETFs, while First Trust Portfolios has filed for a buffer ETF that shields investors from the first 30% of losses.
Innovator ETFs are taking a different approach, proposing 10% and 20% buffer products that reset every three months. Grayscale Investments plans to introduce a covered-call Bitcoin ETF, generating income by selling call options on Bitcoin holdings.
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