In a significant development in the cryptocurrency world, nine Bitcoin exchange-traded fund (ETF) issuers have rapidly accumulated substantial Bitcoin (BTC) assets, collectively holding over 95,000 BTC worth approximately $4 billion.
This move comes less than two weeks after the launch of these ETFs and signifies a growing interest in cryptocurrency investments. Bloomberg analyst Eric Balchunas has been closely monitoring this trend, providing insights into the asset management activities of these ETF issuers.
iShares and Fidelity lead the pack
Among the nine Bitcoin ETF issuers, iShares stands at the forefront with holdings of 33,706 BTC, valued at more than $1.4 billion. Following closely behind is Fidelity, holding 30,384 BTC, with a total value of $1.262 billion.
These two ETFs have emerged as the frontrunners in accumulating significant Bitcoin assets, reflecting their commitment to exposing investors to the cryptocurrency market.
Bitwise and ARK/21Shares occupy the third and fourth positions, respectively, regarding Bitcoin holdings. Bitwise manages 10,235 BTC, valued at $425.4 million, while ARK/21Shares closely follows with 9,134.2 BTC, equivalent to $379.6 million.
These ETF issuers have demonstrated their ability to attract substantial investment in the Bitcoin ETF space, showcasing investors’ demand for cryptocurrency exposure.
Invesco, VanEck, Valkyrie, Franklin Templeton, and WisdomTree are in the mix
Invesco secures the fifth spot among the Bitcoin ETF issuers, holding 6,192.8 BTC, with a total value of $257.4 million. VanEck follows closely with 2,566.9 BTC, worth approximately $106.7 million. Valkyrie is in the seventh position, with holdings of 1,726.5 BTC valued at $71.7 million.
Franklin Templeton occupies the eighth spot, accumulating 1,169.5 BTC, totaling $48.6 million. WisdomTree rounds up the list with holdings of 182.1 BTC, valued at $7.6 million.
Outpacing Grayscale
One notable aspect of this development is that the buying activities of these nine Bitcoin ETF issuers have been outpacing the selling activities of Grayscale Bitcoin Trust (GBTC). Despite GBTC experiencing an outflow of -$590 million on a recent Friday, the combined inflow into the nine Bitcoin ETFs reached +$623 million, marking the third-best day for these ETFs since their launch.
iShares (IBIT) and Fidelity (FBTC) emerged as the top inflows, attracting over $200 million. Invesco (BTCO) and VanEck (HODL) have also seen their best hauls. As a result, the total net flows into these ETFs now stand at +$1.2 billion, while the combined assets under management (AUM) for the nine ETFs have surged to $4 billion. In contrast, GBTC experienced a significant outflow of -$2.8 billion, resulting in a reduced AUM share of 14%.
FTX and traders as major GBTC sellers
Balchunas noted that the primary sellers of GBTC shares are the cryptocurrency exchange FTX and traders who had accumulated shares when the fund was trading at a significant discount. This observation underscores investor sentiment shifting towards Bitcoin ETFs as a preferred investment vehicle over traditional GBTC shares.
