How much assets has the US spot Bitcoin ETF accumulated?

How much assets has the US spot Bitcoin ETF accumulated?

As of January 17, US spot Bitcoin (BTC) exchange-traded funds (ETFs) hold $27 billion in BTC. The majority of assets under management (AUM) is held by Grayscale Bitcoin Trust (GBTC), which is worth $25.3 billion. This accounts for 93.4% of all BTC held by US spot Bitcoin ETFs. But it is worth noting that GBTC was launched in 2013, 10 years ahead of the new ETF.

The second largest spot Bitcoin ETF is BlackRock’s iShares Bitcoin Trust (IBIT), which has accumulated $698.1 million in BTC. However, its 2.6% market share still pales in comparison to GBTC.

Fidelity’s Wise Origin Bitcoin Fund (FBTC) ranked third with $523 million in assets under management and a market share of 1.93%.

Meanwhile, the WisdomTree Bitcoin Trust (BTCW) is currently the smallest spot BTC ETF in the U.S., with $3.2 million in AUM.

How Much Bitcoin Is in the ETF Space?

As of January 17, US spot ETFs hold approximately 632,000 BTC. This is approximately 3.2% of the total BTC in circulation, or about 3.0% of the total BTC supply (21 million).

Grayscale holds the largest amount of BTC, about 591,100 BTC, followed by BlackRock (IBIT) with 16,300 BTC, and Fidelity (FBTC) with 12,200 BTC.

Grayscale sees $1.3 billion in outflows since switching to ETFs

GBTC recently received approval to convert its trust into an ETF. Previously, as a trust, investors could not redeem their shares for Bitcoin, but only on the secondary market at a premium or discount to the net asset value (NAV).

With its conversion to a spot ETF, Grayscale has been experiencing outflows as investors sell their GBTC to enter other BTC ETFs or take profits after its (net asset value) discount ends. Since its conversion to a spot ETF on January 11, GBTC has seen outflows of more than $1.3 billion. Meanwhile, the nine newly established ETFs have accumulated more than $1.8 billion in assets.

One of the reasons for the massive outflows from GBTC is the high management fees. Other ETF providers charge between 0.12% and 0.49%, while GBTC charges 1.5%. With this in mind, GBTC is expected to continue to see outflows over time as investors move their funds to lower-fee providers.