Bitcoin ETFs Now Own 6.29% of Every Bitcoin. What Happens When They Hit 10%?
Bitcoin exchange-traded funds (ETFs) currently hold 6.29% of all Bitcoin, with an estimated $102.532 billion in assets. To reach 10% market penetration, these ETFs would need an additional $60.5 billion in assets, bringing the total to $163.0 billion. At the current rate of inflows, this figure could be reached within three years, around mid-2029.
However, this timeline depends on the consistency of inflows, which have been volatile in the past. As the percentage of Bitcoin held by ETFs increases, it reduces the circulating supply, potentially causing more significant price volatility. Currently, about one Bitcoin in sixteen is held by these funds, with coins stored in cold storage and unable to be spent or used except as backing for traded shares.
The weekly net inflow of cash into these funds will determine how quickly they approach the 10% threshold and whether they will continue to withdraw coins from the market or not.
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