Bitcoin exchange-traded funds (ETFs), excluding Grayscale’s GBTC, have collectively surpassed MicroStrategy’s Bitcoin holdings, marking a significant milestone in the cryptocurrency investment landscape. As of Wednesday, these ETFs held a combined total of 192,255 Bitcoin, over 2,000 more than MicroStrategy, previously the largest publicly traded holder of Bitcoin with 190,000 BTC.
This development highlights the rapid accumulation of Bitcoin by the newly launched spot Bitcoin ETFs, which have been operational for less than a month. Despite their short time on the market, these funds have already drawn billions of dollars from investors seeking Bitcoin exposure without the complexities of direct ownership. Bloomberg Intelligence reports over $1 billion in inflows into the ETFs on Wednesday alone.
Grayscale’s GBTC, which transitioned into a spot Bitcoin ETF alongside the new entrants, is not included in this comparison. Having operated as a closed-end trust before its conversion, GBTC started with approximately 630,000 Bitcoin. However, recent trends show a decline in GBTC’s holdings to just over 470,000 Bitcoin, attributed to profit-taking and investors’ preference for funds with lower fees.
Markus Levin, Head of Operations at XY Labs and Co-Founder of XYO, comments on the distribution of Bitcoin ownership, noting that the network has become increasingly distributed among holders over time. Levin suggests that while a high concentration of Bitcoin in any single entity could pose theoretical risks, the current distribution, including holdings by MicroStrategy and the ETFs, does not threaten the Bitcoin Network’s integrity.
The combined holdings of the Bitcoin ETFs (excluding GBTC) and MicroStrategy account for approximately 1.8% of all Bitcoin that will ever exist, given the cryptocurrency’s capped supply of 21 million tokens. Including GBTC’s holdings, this percentage rises to about 4%. This reflects the significant role that institutional investors and financial products play in the broader Bitcoin ecosystem, underlining the growing acceptance and integration of cryptocurrency into mainstream investment portfolios.
