In an impressive display of investor enthusiasm, nine newly introduced spot Bitcoin exchange-traded funds (ETFs) have quickly amassed 20,859.57 bitcoins, accumulating over $1.3 billion in value within a mere six days. As these funds inch closer to the significant milestone of 500,000 bitcoins, currently holding 474,363.55 bitcoins valued at $30.6 billion, the crypto community watches with bated breath.
Leading the Charge: Blackrock and Fidelity ETFs
Among these new entrants, Blackrock’s IBIT stands out with a staggering reserve of 242,829.94 BTC, equivalent to $15.6 billion, securing its position as the titan among its peers. This hefty reserve accounts for a little over half of the total bitcoins held across all nine funds. Not far behind, Fidelity’s FBTC boasts a holding of 135,741.06 BTC, worth $8.7 billion as of March 23, 2024, making up almost a third of the total bitcoin stash of the nine ETFs.
Together, IBIT and FBTC dominate the scene, holding nearly 80% of the combined total. Other notable funds include Ark Invest’s ARKB and Bitwise’s BITB, with 40,213 BTC and 30,292.21 BTC, respectively, showcasing the diverse yet substantial interest in bitcoin investment through ETFs.
The Race to 500,000 Bitcoins
With the ETFs’ current pace of acquisition, the landmark achievement of holding 500,000 bitcoins could be realized as soon as next week. This rapid accumulation highlights the growing investor confidence in bitcoin and its viability as a significant component of investment portfolios.
Additionally, the custody of these vast bitcoin reserves is distributed among several trusted entities, with Coinbase Custody being the preferred choice for the majority. Fidelity independently manages FBTC’s holdings, Vaneck partners with Gemini, and Valkyrie utilizes Bitgo, indicating a robust and secure infrastructure supporting these investments.
A Significant Slice of the Bitcoin Pie
Collectively, the bitcoin stash held by these nine ETFs represents 2.25% of Bitcoin’s maximum supply, underscoring the significant impact of ETFs on the bitcoin market. Including GBTC, the total reaches an astounding 824,615.55 BTC, or approximately 3.92% of Bitcoin’s cap, further emphasizing the growing influence of institutional investment in shaping the cryptocurrency landscape.
As the crypto market continues to evolve, these ETFs not only offer a new avenue for investors to engage with bitcoin but also mark a milestone in the cryptocurrency’s journey towards mainstream acceptance and integration into the global financial system.
