Since the inception of nine new Bitcoin exchange-traded funds (ETFs) in January, these funds have collectively amassed over half a million Bitcoins. This accumulation equates to 2.54% of Bitcoin’s total circulating supply, with a substantial inflow of $287.7 million recorded on March 28.
Bitcoin Holdings Surge in Value
In a record 54 trading days, the ETFs’ Bitcoin stakes have soared to an impressive $35 billion in value. When considering all US-based spot Bitcoin funds, including the heavyweight Grayscale, the total held is roughly 835,000 Bitcoins, amounting to nearly 4% of the digital currency’s total circulating supply.
After a period of outflows that commenced on March 18, this week saw a reversal, resulting in a net investment influx of $845 million. March 28 witnessed a significant inflow of $183 million, spearheaded by BlackRock’s IBIT fund with a formidable $95 million investment into Bitcoin.
Spotlight on ETF Investment Dynamics
Competitive investment actions were seen from Fidelity and Bitwise, each securing inflows close to $67 million. Meanwhile, Ark 21Shares capitalized on a substantial $200 million intake on March 27 with an additional $27.6 million the following day. Conversely, Grayscale’s GBTC reported an outflow of $105 million, hitting its lowest point since the earlier part of the month.
Post its transition to a spot ETF fund in mid-January, Grayscale has released nearly 285,000 Bitcoins from its GBTC fund. In recent developments, Bitwise has lodged an application with the SEC to establish a spot Ethereum ETF fund. Despite this, ETF analyst Eric Balchunas remains skeptical about the approval chances for an Ethereum ETF by May, suggesting the SEC might be extending the review process, as evidenced by its recent activity around Ethereum-related decisions.
