Bitcoin Exchange-Traded Products Surpass 1 Million BTC Holdings
Global Bitcoin ETFs now own 1M+ coins, worth $68B. US ETFs amassed 855,619 BTC since Jan, averaging 6,200/day. Total ETF holdings hit 1,002,343 BTC, 5.08% of supply. Grayscale's GBTC leads, but BlackRock's IBIT is rising. Concerns about ETFs stalling self-custody growth.
Bitcoin exchange-traded funds (ETFs) have reached a significant milestone globally, collectively amassing more than 1 million coins, with a staggering total valuation of nearly $68 billion. This surge in ETF holdings reflects a growing institutional interest in Bitcoin as an investment asset.
Since their introduction in mid-January, ETFs in the United States alone have absorbed a substantial amount of Bitcoin, accumulating 855,619 coins at an impressive average rate of 6,200 BTC per day. The momentum doesn't stop there. An additional 21 ETFs operating in various countries including Canada, Germany, and Brazil have contributed to the global total, bringing it to 1,002,343 BTC.
This accumulation represents a significant portion of the current circulating supply, amounting to approximately 5.08%. Notably, Grayscale's GBTC remains the largest fund by holdings, with 289,040 coins valued at around $19.9 billion. However, it faces stiff competition from BlackRock's iShares Bitcoin Trust (IBIT), which boasts 287,168 BTC worth approximately $19.8 billion. The possibility of IBIT surpassing GBTC in holdings looms large, driven by consistent inflows and GBTC's ongoing outflows.
Despite the rapid growth of ETF holdings, concerns have emerged regarding their impact on the growth of Bitcoin held in self-custody. Analysis from HODL15Capital raises questions about stagnant growth in self-custody holdings from 2023 to 2024. A chart depicting Bitcoin holdings across various addresses by volume suggests a lack of growth during this period. Interestingly, this trend mirrors a similar period of stagnation observed between 2017 and 2018.
The data underscores the complex relationship between institutional investment vehicles like ETFs and the broader Bitcoin ecosystem. While ETFs provide easier access to Bitcoin for institutional investors, there are lingering concerns about their potential to disrupt the decentralized ethos of cryptocurrency ownership. These developments prompt a deeper examination of the evolving dynamics between institutionalization and decentralization within the Bitcoin market.
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