Bitcoin $104,723.9As demand on the institutional side continues to mature, one of the most important indicators of its integration into the financial ecosystem is the rapid development of Bitcoin Exchange Traded Funds (ETFs). These products have received significant investments from both institutional and individual investors. According to data collected by Bitcoin Magazine Pro, Bitcoin ETFs have currently collected 936,830 BTC, and it is a matter of curiosity whether this amount will exceed 1 million BTC before 2025.
Importance of the 1 Million BTC Limit
Breaking the 1 million BTC mark is more than a symbolic milestone. This demonstrates Bitcoin’s maturity in the market and its acceptance as a reliable asset at the institutional level. Holding large amounts of Bitcoin in ETFs can tighten the supply in the market, increasing upward pressure on the price.
Over $6.562 billion invested in Bitcoin ETFs in November 2024 has significantly exceeded the rate of new BTC miner supply. While 13,500 BTC was mined in November alone, 75,000 BTC was transferred to ETFs. This imbalance can cause prices to rise as demand greatly exceeds supply.
Bitcoin Supply Shortage
The long-term nature of Bitcoin ETF investments leads to the almost complete withdrawal of Bitcoin from circulation. Institutional buyers prefer to hold Bitcoin for long periods of time through ETFs rather than buying and selling frequently. This could lead to a possible supply shock as it reduces the amount of Bitcoin available in the market.
The fact that BlackRock’s Bitcoin ETF has surpassed the company’s own gold fund in terms of total assets is an indication of the acceptance Bitcoin is receiving from institutional investors. This development strengthens Bitcoin’s role as “digital gold” and ensures that it has an important place in investors’ portfolio diversification.
According to current data, there are only about 2.25 million BTC on exchanges. This figure reveals how Bitcoin is becoming increasingly scarce in the market and demand exceeds supply.
With the support of the new US Secretary of State’s “Bitcoin Act”, the Treasury Department’s plan to establish a strategic Bitcoin reserve could have a major impact on the Bitcoin market. This step could put Bitcoin on par with gold in terms of national asset reserves.
In light of these developments, Bitcoin ETFs’ goal of exceeding 1 million BTC before 2025 could contribute to a significant increase in the price of Bitcoin. Market psychology and demand-supply balance are expected to positively affect the Bitcoin price.
Increasing investments in Bitcoin ETFs and long-term holding trends support the future growth potential of the Bitcoin market. Contraction in supply and increase in demand could increase Bitcoin’s value, and continued institutional adoption could strengthen Bitcoin’s role in the financial ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
