The newly launched spot Bitcoin exchange-traded funds (ETFs) continue to vacuum up Bitcoins, now holding over 1 million BTC — which is nearly 5% of the entire 21 million BTC supply. This rapid accumulation has not only pushed the Bitcoin price to new all-time highs but also spurred wider demand for cryptocurrencies.
Capturing Over 1 Million Bitcoin
Spot Bitcoin exchange-traded funds have been an absurd success, with a profound impact on the crypto industry.
Over 30 spot Bitcoin ETFs collectively held 1,002,343 BTC as of May 24, as per a chart posted to X (aka Twitter) on Monday by MicroStrategy founder Michael Saylor. These holdings represent 5% of the circulating supply of Bitcoin.
The total net asset value of the 11 ETFs reached $70.5 billion. Most of that BTC is held within U.S.-based spot Bitcoin ETFs that started trading in January and have broken all past ETF launch performance records. Grayscale’s converted GBTC fund leads the pack with over 293,000 BTC under management, closely followed by BlackRock’s IBIT and their 284,526 BTC cache.
The next biggest funds include Fidelity Wise Origin Bitcoin Trust (161,538 BTC), the Ark 21Shares Bitcoin ETF (48,444 BTC), and the Bitwise Bitcoin ETF (36,185 BTC). Outside the United States, the largest Bitcoin ETF remains Canada’s Purpose Bitcoin ETF, which was the world’s first to go live — owning 27,110 BTC. The Germany-based BTCetc Bitcoin Exchange Traded Crypto (BTCE) follows with 22,490 BTC under its management.
The seven recently established Hong Kong Bitcoin ETFs own 5,789 BTC in total. Despite the initial optimism, Hong Kong crypto ETFs have failed to drive a lot of interest and inflows.
Rapid Adoption Of Bitcoin ETFs Shows Mainstream Acceptance
Spot Bitcoin ETFs are managed by professional fund managers who control the buying, selling, and custody of BTC, thus streamlining the investment process for traditional investors who are not well-versed in the technical aspects of crypto assets.
The world’s largest asset manager, BlackRock, has emerged as a key player in the Bitcoin ETF market. The fund’s popularity has garnered the interest of various high-profile financial institutions, including BNP Paribas, Europe’s second-largest bank, which reported an almost $42K investment in iShares.
American banking giant JPMorgan also disclosed their Bitcoin ETF holdings in multiple funds, including products from BlackRock, Grayscale, ProShares, and Fidelity, amounting to around $750,000.
The soaring adoption of Bitcoin ETFs and the substantial investments by institutional players have legitimized and cemented crypto as an asset class.
