Global Bitcoin Investment Vehicles Now Manage Over 1 Million BTC
Global bitcoin investment vehicles, including recently launched spot exchange-traded funds in the U.S., now manage more than one million BTC — currently valued at around $67 billion — underscoring the growing interest of crypto in investment portfolios.
The Numbers
- The majority, constituting over 83% of those figures, is attributed to U.S. spot and futures bitcoin ETFs.
- Europe and Canada follow the U.S. as the second and third largest markets for bitcoin investment vehicles, respectively.
- Collectively, these vehicles manage 1,008,436 BTC or 5.13% of bitcoin’s circulating supply as of Mar. 4.
A Monumental Threshold
“Crossing one million bitcoins under management in investment vehicles is a monumental threshold,” says Vetle Lunde, senior analyst at K33. “These vehicles have shaken up the bitcoin market structure considerably. A few years ago, spot exchanges held 20% of the circulating supply; now, this figure has fallen to 11%, with ETFs/ETPs, wrapped bitcoin, and a developing derivatives market eating away market share.”
The push beyond one million BTC in investment vehicles “should be an eye-opener for OG bitcoiners that ETFs have become a significant factor in bitcoin’s price discovery,” Lunde added.
Spot Bitcoin ETFs
Of the more than 1 million BTC, nearly 700,000 BTC are under management solely by the recently launched spot bitcoin ETFs in the U.S., according to Glassnode data.
Since debuting in January of this year, U.S. spot bitcoin ETFs are already in a race to beat gold ETFs, which have been operational since 2004. The combined assets under management of U.S. spot bitcoin ETFs have reached over $52.5 billion as of Mar. 4, according to BitMEX Research data, while gold ETFs boast a total AUM of over $100 billion.
As for flows, U.S. spot bitcoin ETFs have seen net inflows totaling $7.9 billion since their launch on Jan. 11, per BitMEX data.
On Mar. 4, U.S. spot bitcoin ETFs saw net inflows worth over $562 million, with Fidelity’s FBTC fund itself contributing a record inflow of over $404 million, according to BitMEX data. Meanwhile, bitcoin ETFs from Invesco, VanEck, and Wisdom Tree experienced outflows yesterday.
Overall, BlackRock and Fidelity continue to dominate the spot bitcoin ETFs space, with their combined AUM of over $19 billion as of Mar. 4, per BitMEX data.
🔥 Hot Take: Bitcoin ETFs Gain Momentum 🔥
The significant milestone of global bitcoin investment vehicles managing over one million BTC highlights the growing interest in cryptocurrencies within investment portfolios. The rise of spot exchange-traded funds (ETFs) in the United States has played a crucial role in this development.
The numbers speak for themselves:
- U.S. spot and futures bitcoin ETFs account for over 83% of the total BTC managed by these vehicles.
- Europe and Canada are also major players in the bitcoin investment vehicle market.
- Combined, these vehicles manage 1,008,436 BTC or 5.13% of bitcoin’s circulating supply.
This achievement is significant for several reasons:
- It demonstrates the impact of ETFs on the bitcoin market structure, with spot exchanges now holding only 11% of the circulating supply compared to 20% in previous years.
- OG bitcoiners should take note that ETFs have become a major factor in bitcoin’s price discovery.
Spot bitcoin ETFs are leading the way:
- Nearly 700,000 BTC are managed by recently launched spot bitcoin ETFs in the U.S.
- U.S. spot bitcoin ETFs are competing with gold ETFs and have already reached over $52.5 billion in combined assets under management.
- Since their launch in January, U.S. spot bitcoin ETFs have seen net inflows totaling $7.9 billion.
On Mar. 4, U.S. spot bitcoin ETFs experienced net inflows worth over $562 million, with Fidelity’s FBTC fund contributing a record inflow of over $404 million. However, other popular bitcoin ETFs saw outflows on the same day.
BlackRock and Fidelity are leading the pack in the spot bitcoin ETF space, with a combined AUM of over $19 billion as of Mar. 4.
The growing success and popularity of bitcoin investment vehicles, particularly spot ETFs, signal a positive trend for the cryptocurrency industry and its integration into traditional investment portfolios. As more investors embrace cryptocurrencies like bitcoin, it is likely that these numbers will continue to rise.
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