Bitcoin ETFs Hold 6.2% of Supply as Investors Show Confidence

ETF giants have significantly increased their holdings in Bitcoin, with over 1.23 million BTC, approximately 6.2% of the circulating supply, now locked in Bitcoin Spot ETFs. This substantial investment signals growing confidence in BTC as a long-term allocation. The average cost of these holdings is around $73,000, indicating that investors are still largely in positions, which suggests a strong market structure.

The MVRV score of Bitcoin ETFs stands at 1.43, indicating limited profitability. This score is far below the 3.7 highs seen during previous bull cycles, where gains in this range have historically prompted traditional players to start trimming their positions. However, the current situation may differ due to the tightening of supply and the bullish momentum.

Recent analysis of BTC ETFs revealed that the average cost of about $73,600 acts as a significant support level during market corrections. This level represents a median breaking point for conservative investors, who often prefer to take profits quickly compared to long-term crypto holders. Traditionally, these investors view 40-50% profits as adequate. However, depending on the continuation of the bullish momentum and the tightening of supply, they may wait longer and target higher multiples.

The spread of holdings across ETF providers highlights not just participation but a broadening trust from traditional finance. With total ETF addresses inching close to 1.5 million BTC, the uptrend since November 2024 has been clear, despite a few pause periods. The relatively moderate MVRV Ratio means profit-taking pressure isn’t overwhelming—yet. All in all, the indicators were positive as far as BTC ETF activities were concerned, although it must be taken with caution as the profit margins were weak at the time of press.