Discover the latest on spot Bitcoin ETFs in the US, managing over $17 billion in assets. Learn about investor demand, major fund managers, and recent market trends.
The recently greenlit batch of nine Bitcoin exchange-traded funds (ETFs) in the United States has now accumulated an impressive 300,000 Bitcoin (BTC), translating to a staggering $17 billion in asset value, as per K33 Research data.
Data sourced from the research firm reveals that the combined Bitcoin holdings managed by these nine funds have reached 303,002 BTC, marking a record high. This total represents 1.5% of the current circulating 19.6 million BTC. At the current market price of approximately $57,040 per BTC, the collective value stands at around $17.3 billion for this leading cryptocurrency.
It's crucial to note that this calculation excludes the holdings of Grayscale, which transformed its existing Bitcoin Trust (GBTC), established in 2013, into a spot Bitcoin ETF upon approval by the United States Securities and Exchange Commission (SEC).
Grayscale, as per its website, independently holds a substantial 444,446 BTC, equivalent to about $25.3 billion. When combined, both the new and old spot Bitcoin ETFs command an impressive $43 billion in cryptocurrency holdings.
Major players in the fund management arena are swiftly acquiring virtual currency assets in response to client demand. Investors are keen on purchasing ETF shares that mirror the underlying price movements of the asset.
BlackRock, the world's largest fund manager, leads the pack among the latest Bitcoin ETF operators with assets under management surpassing $7 billion. The Wall Street giant's iShares Bitcoin Trust witnessed its most successful trading day on Monday, with a transaction volume exceeding $1.3 billion in shares.
In January, the SEC granted approval for these products, which trade similarly to stocks, providing traditional investors with a secure avenue to gain exposure to Bitcoin without concerns about coin custody.
These products have witnessed tremendous success as investors, previously unable to access Bitcoin securely and within regulatory bounds, flock to this space.
Following the approval of spot Bitcoin ETFs, there was a temporary dip in the price of the leading digital currency. This occurred due to significant outflows from Grayscale's product, transitioning from a closed-end fund to an ETF, exerting downward pressure on the price.
However, the outflows from Grayscale have since decelerated, leading to a resurgence in Bitcoin prices—now experiencing an 11% surge over the past week alone.