Things have been quite turbulent in the crypto market since the first American Bitcoin (BTC) exchange funds were approved. The unrest (in a positive sense) is mainly due to the enormous success that the stock market funds seem to be enjoying. How much Bitcoin did these funds actually buy? Get ready, tens of billions of euros are at stake.
Thousands of Bitcoins flowed into funds yesterday
Lookonchain’s analysts monitor developments around the funds on a daily basis. A Bitcoin spot exchange fund (ETF) offers American investors a safe and easy way to invest in Bitcoin. You buy shares in one of the funds and therefore do not have to own any BTC yourself.
The fund then buys the Bitcoins worth of the invested investments and keeps them safe. Since January 10, most funds have seen positive inflows. Also yesterday, according to today’s Lookonchain update. BlackRock’s fund alone purchased 10,003 Bitcoins worth more than half a billion dollars. This fund now owns 105,280 Bitcoin with a total value of $5.5 billion.
Update from February 14th:#iShares(#Blackrock) 10,003 added $BTC($518 million) today and currently holds 105,280 $BTC($5.45 billion).
8 ETFs added 14,104 $BTC($730.3 million) and #grayscale decreased by 1,912 $BTC($99 million). pic.twitter.com/x9AfKy036e
– Lookonchain (@lookonchain) February 14, 2024
This trend of positive inflows began with the launch of the funds. Only Grayscale’s fund, which was a closed-end fund before approval, is currently seeing BTC outflows. This is partly because the costs of this fund are higher than those of its competitors.
The Bitcoin counter stands at over 700,000 BTC
If we add it all up, we come up with a disgusting amount of Bitcoin that the 9 funds now own. In total, the funds have purchased a net 83,776 BTC since January 10th. If we ignore the exhaustive Grayscale ETF in this calculation, we end up with a whopping 239,462 Bitcoin.
In total, all 9 US exchange funds now own 705,566 BTC. This has a total value of almost 34 billion euros.
The Bitcoin price has reacted very positively to fund developments in the last few days. It even broke the $50,000 mark, a level that BTC has not reached since December 2021.