Over 1 Million BTC Held by Global Investment Funds, Totaling $67 Billion in Value
Bollywoodfever, March 5: Global investment vehicles, including the newly introduced spot exchange-traded funds (ETFs) in the United States, are now overseeing assets exceeding one million BTC, valued at approximately $67 billion.
This significant milestone highlights the increasing incorporation of cryptocurrency into investment portfolios.
The lion’s share of this accumulation, over 83%, is held by U.S. spot and futures bitcoin ETFs, as reported by the crypto research entity K33.
Following the U.S., Europe and Canada are the second and third largest markets for bitcoin investment instruments.
Together, these entities manage 1,008,436 BTC, representing 5.13% of the total circulating supply of bitcoin as of March 4, according to K33.
Reaching the “monumental threshold” of one million bitcoins under the management of investment vehicles marks a pivotal moment, according to Vetle Lunde, a senior analyst at K33.
He noted the significant impact these vehicles have had on the bitcoin market structure, shifting from a dominance of spot exchanges to a diversified landscape that includes ETFs/ETPs, wrapped bitcoin, and a burgeoning derivatives market.
The accumulation of over one million BTC in investment vehicles signals to long-time bitcoin enthusiasts the pivotal role ETFs now play in the cryptocurrency’s price discovery process, Lunde emphasized.
Nearly 700,000 of the total BTC managed are attributed to the spot bitcoin ETFs launched in the U.S., as per Glassnode. Since their introduction in January, these U.S. spot bitcoin ETFs are rapidly gaining ground, aiming to rival the longstanding gold ETFs, which have been around since 2004. As of March 4, the assets under management (AUM) of U.S. spot bitcoin ETFs have surged to over $52.5 billion, in comparison to gold ETFs’ AUM of over $100 billion, based on BitMEX Research data.
Since their inception on January 11, U.S. spot bitcoin ETFs have witnessed net inflows of $7.9 billion, with a notable single-day inflow of over $562 million on March 4. Fidelity’s FBTC fund alone accounted for over $404 million of that day’s inflow, setting a new record, while ETFs from Invesco, VanEck, and Wisdom Tree saw outflows.
BlackRock and Fidelity are leading the charge in the spot bitcoin ETF market, with a combined AUM exceeding $19 billion as of March 4, showcasing the growing investor interest and confidence in bitcoin as a viable investment asset.
Also Read, Microstrategy Plans to Purchase Additional Bitcoin Using $600M from Convertible Note Offering
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