Bitcoin exchange-traded products (ETPs) globally have exceeded 1 million in Bitcoin holdings, marking a significant milestone in the cryptocurrency market. These investment vehicles, which track the price or offer exposure to BTC, have attracted a total of 1,002,343 BTC, equivalent to approximately $68 billion.
Since the introduction of spot Bitcoin ETFs in the United States in mid-January, 11 ETFs have accumulated a staggering 855,619 Bitcoin, averaging around 6,200 BTC per day. Data from HODL15Capital reveals that an additional 21 Bitcoin ETPs available in countries like Canada, Germany, and Brazil contribute to the total Bitcoin holdings.
This accumulation represents 5.08% of the current circulating supply of Bitcoin, which is approximately 19,704,484 coins. Grayscale’s GBTC remains the largest fund with 289,040 coins valued at around $19.9 billion. However, BlackRock’s iShares Bitcoin Trust (IBIT) is quickly catching up, holding 287,168 BTC worth about $19.8 billion. If inflows into IBIT continue steadily and GBTC experiences outflows, IBIT may surpass GBTC’s holdings this week.
Grayscale has witnessed a significant decrease in its Bitcoin holdings, losing around 330,960 BTC or 53% of its previous holdings since the conversion of GBTC into a spot ETF. This trend raises questions about whether the ETPs are impeding the growth of Bitcoin held in self-custody.
Analyzing the amount of BTC held in various addresses, it appears that there has been no growth in self-custody from 2023 to 2024. However, it is worth noting that there was also no growth between 2017 and 2018. Interestingly, only 1 million addresses hold 1 BTC or more, highlighting the concentration of Bitcoin ownership.
In conclusion, as the number of Bitcoin ETPs and their holdings continue to rise, the cryptocurrency market is experiencing a significant shift in investment patterns. The dominance of GBTC is being challenged by IBIT, and the impact of these ETPs on self-custody Bitcoin holdings remains a topic of debate in the industry.