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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
09/02/2025

Bitcoin ETP Funds Now Hold 7% of Total Supply, But Demand Is Slowing

According to the latest data, Bitcoin exchange-traded products (ETPs) currently hold more than 1.47 million BTC, equivalent to 7% of the maximum supply of 21 million BTC. U.S. ETFs account for the bulk of that with 1.29 million BTC spread across 11 funds as of August 31. BlackRock's iShares Bitcoin Trust (IBIT) leads the pack, holding 746,810 BTC, while the Fidelity Wise Origin Bitcoin Fund (FBTC) comes in second with nearly 199,500 BTC. Since the end of 2024, total BTC held by ETP funds has grown by roughly 170,000 BTC, equivalent to $18.7 billion.

Bitcoin ETP Funds Now Hold 7% of Total Supply, But Demand Is Slowing

According to the latest data, Bitcoin exchange-traded products (ETPs) currently hold more than 1.47 million BTC, equivalent to 7% of the maximum supply of 21 million BTC.

U.S. ETFs account for the bulk of that with 1.29 million BTC spread across 11 funds as of August 31. BlackRock's iShares Bitcoin Trust (IBIT) leads the pack, holding 746,810 BTC, while the Fidelity Wise Origin Bitcoin Fund (FBTC) comes in second with nearly 199,500 BTC. Since the end of 2024, total BTC held by ETP funds has grown by roughly 170,000 BTC, equivalent to $18.7 billion.

Demand Is Weakening

Despite the surge in holdings, capital flows into Bitcoin funds are showing signs of stalling. According to CoinShares, Bitcoin ETPs recorded net outflows of $301 million in August alone. By contrast, Ethereum funds pulled in a massive $3.95 billion in inflows.

A broader rotation is also playing out in the market. One Bitcoin whale sold 4,000 BTC in exchange for 96,859 ETH within just 12 hours, bringing their total ETH holdings to $3.8 billion. On-chain data platform Arkham also reported that 9 other whales took profit on Bitcoin and rotated roughly $456 million into Ethereum.

Headwinds Ahead

This demand slowdown comes as September is historically Bitcoin's weakest month by price performance, while gold is hitting record highs. Markets are also waiting on the U.S. Securities and Exchange Commission (SEC) to rule on 92 additional crypto ETF applications, including products based on Solana (SOL) and XRP.

Some analysts argue this could fragment capital flows and erode Bitcoin's dominance in the ETF space. Anonymous analyst PlanC predicts that BTC's path to $1 million will not be a sudden explosion but rather a slow, grinding climb stretched out over the next 7 years.

Meanwhile, research firm Delphi Digital warns that Bitcoin's price could rally and then sharply reverse after the Fed cuts rates, unless the market holds steady heading into that event.

Conclusion

ETP funds holding 7% of Bitcoin's total supply underscores the growing role institutional finance plays in this asset class. However, capital rotating into Ethereum and competition from dozens of soon-to-launch ETFs signal that Bitcoin faces significant headwinds on its road to becoming a mainstream allocation in global investment portfolios.