Future markets and ETFs have been formed, and custody has been amassed to over 1 million BTC. These investment instruments, which seek to mirror the performance of Bitcoin, had a total of 1,002,343 BTC as of May 24th. These statistics were posted by Michael Saylor, the executive chairman of MicroStrategy, on his Twitter account.
Most of these Bitcoins are in the United States. Bitcoin spot ETF was launched in January. Among them, two giant funds are Grayscale Bitcoin Trust and BlackRock’s iShares Bitcoin Trust; they possess 289,040 BTC and 287,168 BTC, accounting for nearly half of the total BTC. Another famous Bitcoin ETF is the Fidelity Wise Origin Bitcoin Trust, which has 161,538 BTC, the Ark 21 Shares Bitcoin ETF with 48,444 BTC, and the Bitwise Bitcoin ETF with 36,185 BTC. Globally, the Canadian Purpose Bitcoin ETF is the first to be launched, contains 27,110 BTC and is still the largest Bitcoin ETF outside the USA.
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Combined, these holdings amount to approximately 5 percent of the global circulating supply of Bitcoin at the current market price of $70. 5 billion. This Bitcoin held by ETFs is almost five times the proportion of Saylor’s personal Bitcoin holdings and is equivalent to 214,400 BTC or $15 billion. Bitcoin ETFs provide investors with the same ETF to invest in along with other securities rather than investing directly in Bitcoins by using retirement or tax-advantaged accounts. They also facilitate large institutions’ involvement in Bitcoin by granting them access.
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Institutional Involvement in Bitcoin ETF
Reporting data for the first calendar quarter indicated that more than 20% of the exposure to US spot Bitcoin ETFs belonged to qualified institutional buyers, with total assets of over $100 million each. These are hedge funds, banks, and even Wisconsin’s state pension funds, to mention but a few. This shows that such important entities accept Bitcoin as an investment asset in the financial markets. Further, the trend will likely repeat as more institutions aim to add cryptocurrency to their investment portfolio.
Also, it is essential to look into the factors that may affect Bitcoin by the ETF, including the ETF’s buying of Bitcoin. This reduces the supply of bitcoins available for trading, leading to price fluctuations due to the concentration of bitcoins in these funds. Therefore, it is proved that ETFs occupy a highly significant position in the Bitcoin market.
In the same context, the formation of Bitcoin ETFs represents an opportunity to invest directly in Bitcoin, with additional safeguards. This access especially appeals to institutional investors who may otherwise be reluctant to have direct control over the cryptocurrency. It is interesting to imagine the rise of Bitcoin ETFs as similar to the gradual integration of other digital assets into the financial world.
The exceptional attainment affirms that Bitcoin ETFs possess 1 million BTC or higher, worth $70. We see institutional confidence in Bitcoin, and we see an institutional backing of $5 billion. This goes a long way in showing how the cryptocurrency market is fast changing and how the importance of ETFs is increasing today. Further institutional adoption is also on an upward trend, meaning that Bitcoins will continue accumulating in the traditional financial system, hence the solid placement of Bitcoins as an investment asset.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.