Global Bitcoin investment vehicles, including a spot exchange-traded fund recently launched in the U.S., currently manage more than one million units. BTC
+3.21%
– Its current value is around $67 billion, highlighting the growing interest in cryptocurrencies in investment portfolios.
The majority, accounting for more than 83% of that figure, are Attributed to According to cryptocurrency research firm K33, U.S. spot and futures Bitcoin ETF. Europe and Canada are the second and third largest markets for Bitcoin investment vehicles, respectively, after the United States. According to K33, these vehicles collectively control 1,008,436 BTC, or 5.13% of Bitcoin’s circulating supply as of March 4.
‘Monumental threshold’
“Crossing 1 million Bitcoins under management in an investment vehicle is a monumental threshold,” Vetle Lunde, senior analyst at K33, told The Block. “These vehicles have significantly disrupted the Bitcoin market structure. Just a few years ago, spot exchanges accounted for 20% of circulating supply, but now ETFs/ETPs, wrapped Bitcoin and the evolving derivatives market “As a result, this number has dropped to 11%. It is eating away at market share.”
The effort to surpass 1 million BTC in the investment vehicle “will serve as a wake-up call to OG Bitcoin investors that ETFs have become an important component of Bitcoin price discovery,” Lunde added.
Bitcoin ETF Spot
According to Glassnode data, out of more than 1 million BTC, nearly 700,000 BTC are controlled by the recently launched spot Bitcoin ETF in the US alone.
The U.S. spot Bitcoin ETF, launched in January of this year, is already competing with the gold ETF, which has been in operation since 2004. Total assets managed by U.S. spot Bitcoin ETFs exceeded $52.5 billion as of March 4. According to BitMEX Research DataGold ETFs have a total AUM of over $100 billion.
As for flows, U.S. spot Bitcoin ETFs have seen total net inflows of $7.9 billion since their launch on January 11, according to BitMEX data.
According to BitMEX data, U.S. spot Bitcoin ETFs recorded net inflows of more than $562 million on March 4, while Fidelity’s FBTC fund itself saw record inflows of more than $404 million. Meanwhile, Bitcoin ETFs from Invesco, VanEck, and Wisdom Tree were leaked yesterday.
Overall, BlackRock and Fidelity continue to dominate the spot Bitcoin ETF space, with a combined AUM of over $19 billion as of March 4, based on BitMEX data.
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