Bitcoin Exchange-Traded Funds Hold More Than 1 Million BTC

Bitcoin ETFs Amass Over 1 Million BTC Globally Since January

Bitcoin exchange-traded funds (ETFs), which are investment tools designed to follow the price of Bitcoin or provide exposure to it, have collectively amassed over 1 million BTC worldwide.

Since the introduction of spot Bitcoin ETFs in the United States in mid-January, these 11 funds have accumulated a total of 855,619 BTC, averaging 6,200 BTC per day.

Data from HODL15Capital reveals that an additional 21 Bitcoin ETPs available in countries such as Canada, Germany, and Brazil have contributed to the global total, bringing it to 1,002,343 BTC, valued at approximately $68 billion.

This amount represents 5.08% of Bitcoin’s current circulating supply, which stands at 19,704,484, according to CoinGecko.

Grayscale’s GBTC Leads Bitcoin Holdings, But BlackRock’s IBIT Closes In

Grayscale’s GBTC remains the leading fund in terms of Bitcoin holdings, with 289,040 coins valued at approximately $19.9 billion at the time.

However, BlackRock’s iShares Bitcoin Trust (IBIT) is quickly closing the gap, holding 287,168 BTC worth about $19.8 billion. If current trends continue, IBIT might surpass GBTC this week, assuming steady inflows for IBIT and continued outflows for GBTC.

Since the conversion of GBTC into a spot ETF in mid-January, Grayscale has experienced a significant reduction in its holdings, losing approximately 330,960 BTC, which is 53% of its previous total.

In a post on X dated 28 May, HODL15Capital raised concerns about whether the growth of Bitcoin held in self-custody was being hindered by the rise of ETFs.

A chart illustrating the distribution of BTC across various wallet addresses indicates that the amount of Bitcoin held in self-custody has remained stagnant from 2023 to 2024.

The chart also reveals a similar lack of growth in self-custody between 2017 and 2018.

According to LookIntoBitcoin, only 1 million addresses hold at least 1 BTC.

Conclusion

In conclusion, the rise of Bitcoin exchange-traded funds (ETFs) has significantly impacted the cryptocurrency market, with these funds collectively holding over 1 million BTC globally. As we observe the competition between major players like Grayscale’s GBTC and BlackRock’s IBIT, it’s clear that ETFs are becoming a dominant force in Bitcoin investment. However, the growth of ETFs raises questions about the future of Bitcoin self-custody, as the distribution of BTC across wallet addresses remains stagnant.

Understanding these market dynamics is crucial for both new and seasoned investors. If you’re looking to navigate the complexities of Bitcoin investments, including understanding the impact of ETFs and self-custody trends, Imperial Wealth Crypto is here to assist you.

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