This data does not include Grayscale’s GBTC fund, which previously operated as a trust and is currently recording investor outflows

Bitcoin value under management of spot ETF issuers has surpassed $17 billion

27.02.2024 - 14:25

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4 min

What’s new? Less than two months after trading began, issuers of nine new US spot bitcoin exchange traded funds (ETFs) have accumulated 303 002 BTC worth more than $17,2 billion in assets under management. The data from analysts at K33 Research takes into account products from BlackRock (IBIT), Fidelity (FBTC), Bitwise (BITB), Ark Invest and 21Shares (ARKB), Invesco and Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), Franklin Templeton (EZBC), and WisdomTree (BTCW), but excludes Grayscale’s GBTC fund, which previously operated as a trust and is recording investor outflows after converting to an ETF. All funds were admitted to the market on January 11.

Source: Twitter.com

What else is known? The nine new ETFs currently hold nearly 1,5% of the total BTC supply, which is programmatically capped at 21 million coins. That is more than analytics software developer MicroStrategy, which is the largest holder of the asset among public companies (193 000 BTC), Tether, which issues the largest USDT stablecoin by capitalization (66 465 BTC), and all publicly traded mining companies combined.

Among new funds, BlackRock’s IBIT leads with 132 282 BTC under management ($7,5 billion), while Fidelity’s FBTC is in second place with more than 94 000 BTC ($5,3 billion), according to data from BitMEX crypto exchange’s analytics division.

In turn, the amount of assets under management GBTC from Grayscale has fallen by 28% since January 11: from 619 000 to 444 470 BTC, according to CoinGlass. In one day alone, on February 23, investors withdrew $200 million from the fund.

Despite this, the total flow of funds across all ten ETFs remains positive and exceeds $6 billion. In addition, on February 26, the volume of trading in shares of the new funds reached a record of $2,4 billion, slightly surpassing the result of the first day of the launch and twice exceeding the average daily figure.

Source: Twitter.com

On Monday, FBTC (+$243,3 million) led inflows, followed by ARKB (+$130,6 million). The usually dominant IBIT slipped to third place with $111,8 million. The outflow of funds from GBTC is also gradually decreasing; on February 26, it amounted to only $22,4 million — half as much as the day before.

Investors invested $598 million in cryptocurrencies in a week

Investors invested $598 million in cryptocurrencies in a week

Since the beginning of the year, the inflow of funds into such products has exceeded $5,7 billion

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Earlier, analysts at the Bybit exchange said that institutional traders are favoring ETH ahead of the Dencun hard fork, while retail traders are more optimistic about bitcoin.

Late last year, former BitMEX exchange CEO Arthur Hayes said that institutional adoption would ruin bitcoin as a large number of coins would move out of circulation into the accounts of the largest ETF issuing investment firms, which are controlled by the government.

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