Bitcoin ETFs See Remarkable Growth, Capturing Over $35 Billion in 54 Days

Rabius Sani March 29, 2024

0 25 1 minute read

Contents

1 Rapid Accumulation
2 Unprecedented Growth
3 A Broader Perspective
4 Inflow Dynamics
5 Grayscale’s Adjustments
6 Market Implications

Rapid Accumulation

Since their launch on January 11, nine new spot Bitcoin exchange-traded funds (ETFs) have made significant strides in the crypto market. According to Farside Investors, these funds have now amassed over 500,000 Bitcoin, representing 2.54% of the digital currency’s circulating supply.

Unprecedented Growth

Thursday marked another successful day for these ETFs, with a notable $287.7 million in Bitcoin added to their holdings. This rapid accumulation has catapulted the value of Bitcoin held by these nine ETFs to an impressive $35 billion in just over two months of trading.

A Broader Perspective

When considering all U.S. spot Bitcoin funds, including the holdings of Grayscale, the total climbs to 835,000 BTC. This figure accounts for nearly 4% of Bitcoin’s total circulating supply, highlighting the significant market share these funds have captured.

Inflow Dynamics

After a period of outflows that began on March 18, this week marks a return to positive inflow dynamics for ETFs, with $845 million added so far. BlackRock’s IBIT fund led the charge on March 28 with $95 million in inflows, followed closely by Fidelity and Bitwise, each seeing inflows around $67 million. Ark 21Shares also reported substantial activity with $27.6 million, riding the wave of a massive $200 million inflow the day before.

Grayscale’s Adjustments

Despite the influx of funds into spot Bitcoin ETFs, Grayscale’s GBTC experienced an outflow of $105 million, its lowest since March 12. Since transitioning to a spot ETF in mid-January, Grayscale has reduced its GBTC fund by approximately 284,846 BTC.

Market Implications

The surge in Bitcoin ETFs underscores the growing investor interest and confidence in cryptocurrency as a viable asset class. With substantial inflows marking a strong start to 2024, these ETFs are setting a precedent for the integration of digital assets into mainstream investment portfolios.