Spot Bitcoin ETF Appetite Surges: Holdings Soar to 500,000 BTC

Since their launch in January, nine new spot Bitcoin exchange-traded funds (ETFs) have amassed over 500,000 Bitcoin (BTC), representing 2.54% of the current circulating supply. The ETFs have attracted significant inflows, particularly on Thursday, when they accumulated $287.7 million in Bitcoin, bringing their total holdings to $35 billion in just 54 trading days.

Surge in Appetite for Spot Bitcoin ETFs: Holdings Skyrocket to 500,000 BTC

Since their inception in January, the nine spot Bitcoin exchange-traded funds (ETFs) have amassed a staggering 500,000 Bitcoin (BTC). This remarkable accumulation has propelled their holdings to an impressive 2.54% of the current circulating supply.

Fueled by Thursday's substantial inflows, the nine ETFs added another $287.7 million in Bitcoin to their collective holdings, marking a significant milestone. This influx brings their total Bitcoin holdings to a substantial $35 billion value, achieved within a mere 54 trading days.

The ETF dominance in the Bitcoin market extends beyond the recent launches, with all U.S. spot Bitcoin funds, including Grayscale, now holding an aggregate 835,000 BTC. This constitutes a sizable 4% of the entire supply, underscoring the growing institutional interest in the leading cryptocurrency.

The reversal of the outflow trend, which had persisted since March 18, is evident in the substantial $845 million in inflows recorded so far this week. On March 28 alone, inflows amounted to $183 million, with BlackRock's IBIT fund leading the charge with a significant $95 million inflow.

Fidelity and Bitwise followed suit with inflows of approximately $67 million each, while Ark 21Shares experienced a $27.6 million inflow, following a massive $200 million influx on Wednesday.

Grayscale's GBTC, the once-dominant force in Bitcoin trusts, has witnessed a significant outflow of $105 million, its lowest level since March 12. This departure reflects the growing preference for spot ETFs, which provide real-time exposure to Bitcoin, unlike GBTC's previous trust structure.

In parallel developments, Bitwise has submitted an S-1 application to the Securities and Exchange Commission (SEC) for its spot Ethereum ETF. However, ETF analyst Eric Balchunas remains skeptical, assigning a pessimistic 25% likelihood of approval by May, with the possibility of further downgrades.

The growing popularity of spot Bitcoin ETFs underscores the maturation of the cryptocurrency market and its increasing appeal among institutional investors. The continued inflows and accumulation of Bitcoin by these funds suggest a long-term bullish outlook for the leading digital asset.

As the SEC deliberates on Bitwise's Ethereum ETF application, the industry eagerly awaits a regulatory green light for the expansion of spot ETF offerings, further bolstering the accessibility and legitimacy of cryptocurrencies in the mainstream financial ecosystem.