Approved by the U.S. Securities and Exchange Commission (SEC) on January 10, 2024, Bitcoin Spot ETFs have been on the market for about two weeks. During this period, the amount of Bitcoin held by ETF holders seems quite high.
Amount of Bitcoin held by ETF holders
The amount of Bitcoin held by the 10 Bitcoin ETFs is as follows, as of January 24, 2024:
- Fidelity: 31,976 BTC ($1,329,331,948.70)
- BlackRock: 33,430 BTC ($1,302,220,918.76)
- Bitwise: 11,188 BTC ($445,738,100.59)
- Franklin Templeton: 1,276 BTC ($48,574,389.01)
- Grayscale: 558,280 BTC ($28,386,046,671.59)
Grayscale effect
According to this data, if Grayscale’s Bitcoin Trust is excluded, the amount of Bitcoin held by ETF holders reaches 131,350 BTC ($4,998,707,138.06). This amounts to approximately 0.7% of Bitcoin’s market cap. The 10 BTC ETFs have recorded a total of $1.1 billion in net inflows so far this month. This includes the impact of Grayscale’s BTC Trust, which has seen outflows of around $3.5 billion so far as investors dump long-held shares. “GBTC outflows have introduced a dynamic that needs to normalize in the market before we see true price discovery,” said Leah Wald, CEO of crypto asset investment firm Valkyrie Investments.
The approval of Bitcoin ETFs is seen as an important step towards the adoption of cryptocurrencies by a wider audience of investors. These ETFs are expected to bring greater liquidity and reliability to the market by making it easier for institutional investors to invest in cryptocurrencies. The launch of BTC ETFs is seen as a major milestone for the cryptocurrency market. These ETFs are expected to further grow the market by encouraging the adoption of cryptocurrencies by a wider range of investors.
Implications of BTC ETF
In the future, interest in ETFs is expected to increase as more institutional investors invest in cryptocurrencies. This could cause the amount of Bitcoin held by ETFs to increase even further. The future of Bitcoin ETFs will depend on the future of the cryptocurrency market. If cryptocurrencies are adopted by a wider range of investors, interest in ETFs will also increase. This could cause the amount of BTC held by ETFs to increase even further. However, cryptocurrencies are considered a risky investment tool. Therefore, investors need to evaluate the risks carefully before investing in ETFs.
Bitcoin ETFs are also expected to have significant impacts on the market. These ETFs can make price movements more stable by adding more liquidity to the market. It can also encourage more investors to invest in cryptocurrencies by creating more credibility in the market. For example, the introduction of BTC ETFs could see Bitcoin’s market value reach $2 trillion by 2025, according to a study from Bloomberg Intelligence.
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