US spot Bitcoin ETFs now hold over 6% of total Bitcoin supply, squeezing market liquidity.

US spot Bitcoin exchange-traded funds now hold more than 6% of Bitcoin’s total supply, according to a report originally published by Pluang. The growing concentration of holdings in the US-listed funds is described as tightening liquidity in the wider Bitcoin market.

Spot Bitcoin ETFs are investment products designed to track Bitcoin’s market price while holding the underlying asset. They allow investors to gain Bitcoin exposure through shares traded on traditional exchanges rather than directly buying, storing, and managing the cryptocurrency themselves.

Bitcoin has a fixed maximum supply, a feature that makes changes in where coins are held closely watched by market participants. As a larger share of the supply is held by spot ETFs, fewer coins may be readily available for trading in other parts of the market, potentially making liquidity conditions an important factor to monitor.