Issuers’ accounts hold 2,54% of the asset’s current supply

New BTC ETFs have accumulated $35 billion worth of bitcoins under management

29.03.2024 - 12:45

103

3 min

What’s new? US spot bitcoin exchange-traded funds (ETFs) have accumulated 500 000 coins worth $35 billion under management in just 54 days of trading. In question are nine new funds admitted to the market on January 11: BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, Valkyrie’s BRRRR, VanEck’s HODL, Wisdom Tree’s BTCW, Franklin Templeton’s EZBC, and the joint funds of ARK Invest and 21 Shares (ARKB), and Invesco and Galaxy (BTCO).

Material by Cointelegraph

What else is known? The above data does not include Grayscale’s GBTC fund, which is not new and previously operated as a bitcoin trust with no share redemption option. On January 11, it was converted to an ETF with a management fee of 1,5%, which is significantly higher compared to its competitors.

Combined, these factors have led GBTC to face outflows since it began trading, totaling $14,77 billion, leading to a correction in overall performance.

That said, GBTC remains the largest in terms of assets under management, holding $23,64 billion worth of bitcoins, according to SoSoValue.

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From March 18 to March 22, the funds experienced total outflows, but inflows rebounded on March 25, reaching $860,09 million by March 28. In total, investors have put $12,13 billion into spot bitcoin ETFs since trading began.

As a result, new funds have accumulated 2,54% of bitcoin’s circulating supply under management, and together with GBTC, this figure is approaching 4% (835 000 coins). The leaders in terms of fund inflows and assets under management are IBIT, FBTC, and ARKB.

IBIT has seen $13,96 billion in inflows since January 11, with $17,83 billion in assets under management, while the figures for FBTC were $7,58 billion and $10,24 billion, and for ARKB, $2,3 billion and $3,16 billion, respectively.

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Most BTC ETF issuers are also awaiting approval of applications to launch similar Ethereum-based products. So far, the SEC securities regulator is postponing deadlines for making decisions on them, and industry experts believe that spot ETH ETFs will not appear on the US market this year. Thus, Bloomberg analyst Eric Balchunas reduced the probability of their approval in May to “a very pessimistic 25%” due to the lack of involvement from the SEC.

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