Grayscale, Blackrock, and Fidelity Dominate ETF Holdings— Over 95% Stored on Coinbase
Newly launched spot bitcoin exchange-traded funds (ETFs) have acquired a substantial amount of bitcoin, with Grayscale’s GBTC leading the pack as the top custodian with 566,973.40 BTC, valued at $23.5 billion. However, GBTC recently experienced a withdrawal of 50,106.59 BTC. Blackrock’s IBIT holds the second-highest bitcoin balance among U.S.-based spot bitcoin ETFs, with 28,622 BTC worth $1.19 billion. Fidelity’s Wise Origin ETF (FBTC) comes in third, holding approximately 24,857 BTC valued just above $1 billion. Combined, Blackrock and Fidelity account for 65.72% of the total bitcoin held by all nine newly introduced ETFs.
The Bitwise, Ark Invest, 21shares, Invesco Galaxy, Valkyrie, and Franklin Templeton ETFs also hold significant amounts of bitcoin. When combined with GBTC, the total held by U.S. spot bitcoin ETFs amounts to over 648,339 BTC, estimated at $27 billion as of January 21, 2024. Notably, Coinbase Custody secures 95.83% of the total bitcoin held by all ten funds, followed by Fidelity and Gemini. With the dominance of Grayscale and the increasing holdings of the newly launched ETFs, the cryptocurrency market is witnessing significant growth and mainstream adoption.
Hot Take: Grayscale Leads but Faces Growing Competition
Grayscale’s GBTC remains the leader in bitcoin holdings among the newly launched spot bitcoin ETFs. However, Blackrock, Fidelity, and other ETFs are quickly amassing substantial bitcoin reserves, challenging GBTC’s dominance. Coinbase Custody, being the primary custodian for majority ETFs, indicates the trust placed in reputable cryptocurrency exchanges for secure storage. As institutional investors continue to enter the cryptocurrency market, the demand for bitcoin and other digital assets will likely increase. This trend reinforces the growing mainstream acceptance of cryptocurrencies as investment vehicles. The competition among ETFs and custodial services will only intensify as more investors join the crypto space, driving innovation and pushing the boundaries of traditional finance.
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