At the beginning of January the American Securities and Exchange Commission (SEC) after a long wait 10 different spots Exchange-traded funds (ETFs) for Bitcoin (BTC) good. This type of exchange traded fund is considered the best type of ETF one could hope for, but post-approval we mainly saw significant outflows. Nevertheless, the stock market funds own a large share of it Bitcoin supply.
Bitcoin spot ETFs hold a huge amount of Bitcoin
There are currently around 19.6 million BTC in total on the social media platform, so the ETFs together account for around 3 percent of the circulating Bitcoin supply.
I don’t have a fancy ATM, but here’s a quick calculation 👇
Total: 591,738 BTC
Current holdings: 19,614,396 BTC
(Total / Current Offer) * 100 = 3%
This perfection seems right 😉 pic.twitter.com/wu4vhuGeZ7
– Maartunn (@JA_Maartun) February 1, 2024
Combined, that’s more than any other company, according to BitcoinTreasuries. MicroStrategy currently owns 189,150 BTC, which is worth about $8.1 billion. That’s about 0.9 percent of the total BTC in circulation.
Together, the ETFs even have a little more than half the number of coins that Bitcoin inventor Satoshi Nakamoto would own. This is estimated at 1.1 million BTC.
GBTC is the biggest cause of contraction
These are the numbers after spot ETFs suffered from significant capital flight. The vast majority of coins belong to Grayscale. No less than 564,402 BTC are in the GBTC fund, which has existed for a long time but was converted into a spot ETF at the beginning of January. So Grayscale is even bigger than MicroStrategy.
This has allowed it to build a huge lead over the rest of the funds, which, according to the analyst, own “only” 27,336 BTC. While that’s worth nearly $1.2 billion, it’s nothing compared to Grayscale’s assets, which are worth more than $24.2 billion.
Almost all contractions can therefore be explained by GBTC – all other funds started from scratch. This is said to be because Grayscale charges investors very high trading commissions and FTX is now bankrupt owned a large number of GBTC shares.