Eric Balchunas: Satoshi Nakamoto Is No Longer the King of the Hill

Spot Bitcoin ETFs Overtake Satoshi Nakamoto in Bitcoin Holdings

ETFs Claim the Throne in Bitcoin Ownership

Eric Balchunas, senior analyst at Bloomberg Intelligence, has highlighted a significant shift in Bitcoin ownership dynamics. For the first time, spot Bitcoin exchange-traded funds (ETFs) collectively hold more Bitcoin than the cryptocurrency's enigmatic creator, Satoshi Nakamoto. Since their inception earlier this year, these ETFs have attracted over $33 billion in inflows, with $2.4 billion added in the past week alone.

"The king of the hill is no longer the king. U.S. spot ETFs just surpassed Satoshi in total Bitcoin held," Balchunas remarked. "They now hold more than 1.1 million coins — more than anyone else in the world. And these funds are still in their infancy."

As of now, 12 actively traded spot Bitcoin ETFs hold a combined $112.74 billion worth of Bitcoin, equivalent to more than 1.1 million coins. This places them ahead of Nakamoto's untouched holdings of approximately 1.1 million BTC, mined in Bitcoin's early days.

Leading the pack is BlackRock's IBIT fund, which alone accounts for over 500,000 Bitcoin. Other major players in the ETF space have also rapidly accumulated substantial reserves, benefiting from the growing interest in Bitcoin as an institutional-grade asset.

Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to have mined around the first 22,000 blocks, earning 50 Bitcoin per block. These untouched holdings, valued at over $100 billion, represent a significant share of Bitcoin's finite supply but have remained dormant since their creation.

Speculation around Nakamoto's identity and intentions continues, with some suggesting that the creator has intentionally stayed out of the spotlight, possibly even withdrawing small amounts of BTC anonymously since 2010.

The rapid growth of Bitcoin ETFs reflects a surge in institutional demand for cryptocurrency exposure. ETFs provide a regulated, accessible pathway for investors to participate in the Bitcoin market without directly managing private keys or navigating exchanges.

Balchunas emphasized the significance of this shift: "These ETFs are barely a year old, yet they've achieved a scale that has surpassed the holdings of Bitcoin's creator. This underscores the immense appetite for regulated Bitcoin investment vehicles."

The rise of spot Bitcoin ETFs signals a new era in Bitcoin's adoption and market dynamics. With institutions like BlackRock leading the charge, Bitcoin is transitioning from a niche digital currency to a mainstream financial asset. This development may further stabilize the market and encourage broader adoption, even as Satoshi Nakamoto's original holdings remain a symbol of Bitcoin's decentralized roots.

While Nakamoto's untouched Bitcoin stash once symbolized the pinnacle of ownership, the collective holdings of Bitcoin ETFs now represent a modern shift toward institutional dominance in the cryptocurrency space. As the market matures, these ETFs are likely to play an increasingly central role in Bitcoin's journey toward global financial integration.