A few weeks have passed since the Bitcoin ETFs have gone live on trading. Here’s how much of the asset’s circulating supply these funds hold now.
Bitcoin Spot ETFs Now Carry This Much Of The Cryptocurrency’s Supply
On January 10, the much-anticipated spot ETFs gained approval for Bitcoin from the US Securities and Exchange Commission (SEC). The next day, January 11th, these ETFs went live on trading, marking a historic day for the cryptocurrency.
Exchange-traded funds (ETFs) refer to financial instruments that allow investors to gain exposure to a commodity without actually owning said asset. In the case of BTC, ETFs can be a more appealing way to invest in the coin for traders who aren’t well-versed in how cryptocurrencies work.
The spot ETFs trade on traditional exchanges, so such investors, who may already be familiar with the traditional mode of trading, won’t have to learn how to navigate digital asset exchanges and wallets.
In order to provide this indirect exposure to the investors, the funds themselves buy and hold Bitcoin. CryptoQuant Netherlands community manager Maartunn has shared some quick numbers related to the current holdings of the spot ETFs in a new post on X.
First, here is a chart that shows the holdings of the older BTC funds, including the Grayscale Bitcoin Trust (GBTC):
The value of the metric appears to have taken a plunge in recent days | Source: @JA_Maartun on X
From the graph, it’s visible that the holdings of these funds have plunged recently. This is due to the massive outflows that GBTC has observed following its conversion to a spot ETF. In total, these funds now carry 564,402 BTC.
Now, below is a chart that displays the cumulative flows that the new spot ETFs as a whole have witnessed since they have gone live.
The trend in the cumulative flows for the ETFs | Source: Go to Source to See Full Article
Author: Keshav VermaDid you like this?
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