July 21, 2024
Bitcoin ETFs Surpass MicroStrategy in BTC Holdings
Bitcoin ETF

Bitcoin ETFs Surpass MicroStrategy in BTC Holdings

In a landmark development within the realm of cryptocurrency investment, recently launched spot Bitcoin ETFs have rapidly amassed substantial holdings, outstripping even renowned entities like MicroStrategy. Wednesday’s data revealed an astonishing acquisition of nearly 5,000 tokens by these ETFs, pushing their collective Bitcoin holdings to over 192,000 BTC. This figure now exceeds the holdings of MicroStrategy, whose total stood at 190,000 BTC as of the end of January.

The swift ascent of these ETFs, which have been on the market for less than a month, underscores the growing appetite among investors to gain exposure to Bitcoin without the logistical complexities of direct acquisition and storage. Wednesday alone witnessed a staggering influx of over $1 billion into these ETFs, as per data from Bloomberg Intelligence.

Significantly, these figures exclude Grayscale’s GBTC, a prominent player in the cryptocurrency space. Although GBTC also transitioned to a spot product at the same time as the other ETFs, its journey began as a closed-end trust, boasting approximately 630,000 Bitcoin. However, recent trends indicate a departure of tokens from GBTC, attributed to profit-taking or a quest for reduced fees. Presently, the fund holds slightly over 470,000 Bitcoin.

Markus Levin, Head of Operations at California-based tech startup XY Labs and co-founder of XYO, weighed in on the evolving landscape of Bitcoin ownership. He emphasized the decentralized nature of Bitcoin holdings, noting that while the concentration in any one country or company could pose concerns, the current distribution, including entities like MicroStrategy and the ETFs, does not present a risk to the Bitcoin network.

Bitcoin’s underlying code dictates a fixed supply of 21 million coins, accentuating the significance of these recent acquisitions. With asset management giants such as BlackRock, Fidelity, and VanEck among the ETF issuers, excluding GBTC, and combined with MicroStrategy, they now collectively hold approximately 1.8% of the total available Bitcoin. When factoring in GBTC’s holdings of 470,000 tokens, this figure climbs to 4%.

The surge in Bitcoin holdings by these ETFs signals a pivotal moment in the mainstream adoption of cryptocurrencies as legitimate investment vehicles. With institutional heavyweights and retail investors alike showing increasing interest, the cryptocurrency market continues to redefine traditional paradigms of asset ownership and investment strategies. As the landscape evolves, observers eagerly await further developments in this dynamic space.

Image by MicroStrategy on Flickr

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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