In less than a year, U.S. spot Bitcoin Exchange-Traded Funds (ETFs), launched in January 2021, have achieved an impressive milestone. As of December 11th, they’ve amassed $50.6 billion in cumulative net inflows, equivalent to approximately 500,000 BTC, based on Bitcoin’s current market value of $101,000. This remarkable feat underscores the robust investor interest in regulated Bitcoin exposure and classifies this as one of the fastest-growing ETFs in history.
Within the first twelve months, these ETFs have swallowed up over 2.5% of Bitcoin’s circulating supply. Vetle Lunde, Head of Research at K33 Research, provided a clear picture of this steady ascension, sharing a chart outlining the year-long consistent growth in net flows into Bitcoin spot ETFs. By February 15, the inflows had reached 100,423 BTC, and by March 12, they doubled to 203,103 BTC. By August 26, the numbers had grown to 302,221 BTC, and by November 7, they’d reached 405,270 BTC. As of December 11, the inflows topped 500,925 BTC.
Leading the charge in Bitcoin inflows are asset managers such as BlackRock, Fidelity, ARK, 21Shares Bitcoin ETF, and Bitwise. In particular, BlackRock’s IBIT has recorded total inflows of $35 billion, while Fidelity’s FBTC has seen $12.22 billion. ARK’s ARKB and Bitwise’s BITB trail behind, with inflows of $2.64 billion and $2.21 billion, respectively.
Other asset managers, including WisdomTree, VanEck, Coinshares Valkyrie, Franklin, and Invesco Galaxy Bitcoin ETF, have seen inflows in the millions, a figure substantially lower in comparison. Meanwhile, Grayscale has experienced a considerable outflow of $20.89 billion since its launch, with the outflow trend showing no sign of slowing down.
Bitcoin spot ETFs have recently surpassed 1.1 million BTC in total holdings, making history and surpassing even Satoshi Nakamoto to become the largest holder of Bitcoin.
The swift accumulation is in sync with the increasing demand from institutional and retail investors seeking regulated exposure to Bitcoin. Analysts attribute this surge to various factors, including the mounting concerns about inflation and the narrative positioning Bitcoin as digital gold.
This news underscores the rapidly evolving landscape of cryptocurrency and the growing acceptance of Bitcoin as a viable investment option by institutional and retail investors alike. As the inflow trend continues to ascend, it’s clear that Bitcoin ETFs have carved out a substantial niche in the financial market, altering the landscape of digital asset investing.
