An unprecedented shift in the cryptocurrency market occurred on Monday as nine traditional asset management firms surpassed MicroStrategy’s Bitcoin holdings through spot Bitcoin ETFs, a report by HODL15Capital confirmed.
Institutional investors are rapidly accumulating Bitcoin, marking a potentially new era of mainstream adoption.
More Than 216,000 BTC in the Hands of TradFi
According to a post on X (formerly Twitter) by HODL15Capital, the spot Bitcoin ETF market now holds 216,309 Bitcoin (worth $10.3 billion), representing more than 1% of Bitcoin’s total supply.
The new spot #Bitcoin ETFs hold more $BTC than @saylor ‘s $MSTR
The 9 new ETFs purchased 216,309 Bitcoin (worth $10.3 Billion!!!) in just 20 days
$IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC pic.twitter.com/i8amhqCjWF
— HODL15Capital
(@HODL15Capital) February 11, 2024
This vast amount has been accumulated within a 20-day window since the US Securities and Exchange Commission (SEC) gave the green light on January 11.
This is more than the 190,000 Bitcoin assets institutional software intelligence giant MicroStrategy holds in its treasury. According to BuyBitcoinWorldwide Treasuries, MicroStrategy’s stash is 0.905% of the total circulating supply and worth $9.3 billion.
HODL15Capital’s infographic identifies BlackRock (IBIT), Fidelity (FBTC), BitWise (BITB), Valkyrie (BRRR), Franklin Templeton (EZBC), Ark’s 21Shares (ARKB), Invesco (BTCO), VanEck (HODL), and WisdomTree (BTCW) as the firms accumulating Bitcoin assets. BlackRock’s IBIT fund is the largest, holding 80,000 BTC ($3.7 billion).
Corroborating the strong appeal spot Bitcoin ETF holds for investors, BitMEX Research highlighted that $541 million flowed into the ecosystem on February 9.
Bitcoin ETF Flow – 9th Feb
All data out. Strong day at $541.5m of net inflow
Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3
— BitMEX Research (@BitMEXResearch) February 10, 2024
Bitcoin spot ETFs are a hybrid financial instrument that allows retail investors to interface with the digital asset ecosystem.
Instead of buying Bitcoin directly, investors can purchase tokenized shares in a fund that tracks Bitcoin’s price.
Bitcoin ETFs are gaining popularity largely because investors don’t have to store the virtual assets. Spot ETFs track the underlying asset’s performance in real-time without the user exerting extra effort.
US Bitcoin Spot ETFs See $2.8 Billion Since Launch
Bitcoin-backed investment options have continued to attract large inflows. Capturing this trend, digital asset management firm CoinShares noted $2.8 billion in inflows since the launch of US spot Bitcoin ETFs.
Digital assets start the week with US$1.1bn inflows!
AuM is at its highest level since early 2022, at US$59bn.– ETFs dynamics –
The momentum of inflows into new issuers is not slowing down. Newly issued US spot-based Bitcoin ETF now total US$2.8bn inflows since their… pic.twitter.com/kGqVU6jX62
— CoinShares (@CoinSharesCo) February 12, 2024
According to CoinShares, assets under management (AUM) reached their highest levels since early 2022, mirroring the previous high of $59 billion in institutional digital asset investments.
Sharing further insights, CoinShares noted that Bitcoin recorded the most inflows, with $1 billion locked in. This represents 98% of the total pooled funds. Meanwhile, Ethereum’s Ether asset has pooled $16.5 million in inflows, while Cardano’s ADA follows with $6.1 million.
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