10% of the Bitcoin supply is in the hands of Wall Street: ETF losses exceed 7 billion USD – is the market losing its growth narrative?
New data from Lookonchain shows that the ownership structure of Bitcoin is changing rapidly as institutional money takes an increasing share. Currently, Spot Bitcoin ETFs and Strategy (MicroStrategy) hold about 10% of the total BTC supply – equivalent to over 2 million BTC.
Specifically, 11 Spot ETFs have held 1.29 million BTC (worth over 115 billion USD), accounting for 6.5% of the circulating Bitcoin. Among them, the three largest funds are BlackRock (IBIT), Fidelity (FBTC), and Grayscale (GBTC), which hold the majority market share.
However, the issue lies in the cost of capital. The average purchase price of the ETFs is around 85,000–90,000 USD/BTC, higher than the current market by about 8,000–13,000 USD, causing them to incur over 7 billion USD in unrealized losses. At the same time, these funds have also recorded 10 consecutive days of withdrawals, while the price of BTC has dropped by about 8% in a short period.
The concerning point is not the loss, but the change in the market's “personality.” As Bitcoin is in the hands of institutions and traditional brokerage accounts, the flow of money becomes more sensitive to macro sentiment than ever before. If retail investors on Wall Street continue to face pressure from losses, defensive selling may extend.
In the current cycle, #Bitcoin is no longer the playground of retail. And when Wall Street holds the majority of the “goods,” the biggest question is: what story is strong enough to bring institutional money back?
