As the price of Bitcoin (BTC) continues to soar, US-based spot Bitcoin exchange-traded funds (ETFs) are nearing a crucial milestone. With cumulative holdings valued at just $2.2 billion shy of $110 billion, these ETFs have already made up over 5.7% of the entire Bitcoin supply, according to data from Dune.
The Rise of US Spot Bitcoin ETFs
The growth of US spot Bitcoin ETFs has been nothing short of remarkable in recent times. As BTC crossed the $100,000 price level, these funds have witnessed record-breaking investments. In fact, the US spot ETFs accounted for approximately 75% of new investment in Bitcoin, driving its price past the $50,000 mark by February 15, 2024.
BlackRock’s Dominance
BlackRock, the world’s largest asset manager, dominates the US Bitcoin ETF market. Its iShares Bitcoin Trust ETF holds an impressive 542,000 BTC, valued at $51.5 billion. This accounts for a staggering 47.9% of the market share among all US Bitcoin ETFs.
Market Share and Holdings
Here’s a breakdown of the top Bitcoin ETF issuers by holdings and market share:
| Issuer | Holdings (BTC) | Market Share |
| — | — | — |
| BlackRock (iShares Bitcoin Trust ETF) | 542,000 | 47.9% |
| Grayscale Bitcoin Trust (GBTC) | 330,000 | 29.4% |
| ProShares Short Bitcoin ETF (BITI) | 100,000 | 8.9% |
Bitcoin’s Rally and Potential Milestones
The growth of US spot Bitcoin ETFs has significantly contributed to the cryptocurrency’s rally toward the $100,000 milestone. As Bitcoin continues to push past this mark, several analysts predict that it could reach even higher prices in the coming months.
Analyst Predictions: $200,000 by 2025
Ryan Lee, chief analyst at Bitget Research, believes that BlackRock’s Bitcoin ETF will bring more institutional adoption in 2025. According to Lee, simplifying access for large investors will propel Bitcoin toward $200,000 during the year.
Long-term Projections and Regulatory Influences
Lee notes that long-term projections suggest sustained growth, with some forecasts placing Bitcoin’s value at $200,000 by 2025. However, he cautions that the trajectory will be influenced by regulatory developments, market dynamics, and broader economic conditions.
Bitcoin’s Next Milestone: Recovering Above $100,000
Despite its current price hovering around $97,600, Bitcoin still needs to gain another 4.1% to recover above the $100,000 psychological mark. However, if it manages to break past this resistance level, it could trigger a significant rally.
Potential Liquidation of Leveraged Short Positions
A potential rally above $99,000 would liquidate over $1 billion worth of leveraged short positions, according to CoinGlass data. This highlights the significance of breaking past this critical resistance level.
Conclusion
The growth of US spot Bitcoin ETFs has been a significant contributor to the cryptocurrency’s rally toward the $100,000 milestone. As these funds continue to gain traction, it will be essential for investors and analysts to monitor their performance and potential future milestones. With several predictions pointing toward a price of $200,000 by 2025, the next few months are expected to be critical in determining Bitcoin’s trajectory.
