Eleven months and thirteen days ago, the U.S. financial landscape witnessed a transformative moment with the introduction of its first spot bitcoin exchange-traded funds (ETFs). Since their debut, these ETFs have not only set records but collectively amassed more than a million bitcoins, marking a monumental shift in cryptocurrency investment.
Surging Spot ETFs Redefine Crypto Investments
The launch of spot bitcoin ETFs marked a pivotal event in bridging traditional finance (TradFi) with the cryptocurrency market. Ten funds immediately entered the fray, with eleven initially receiving regulatory approval. Hashdex’s DEFI fund, for instance, transitioned from a futures ETF to a spot bitcoin fund only by late March, while Grayscale’s Bitcoin Mini Trust began trading at the end of July. As of December 24, 2024, these ETFs collectively hold an impressive 1,132,727.50 BTC, according to their respective disclosures.
Blackrock Leads the Pack
Blackrock has emerged as the undisputed leader in the bitcoin ETF space. Its IBIT fund holds a staggering 553,055.27 BTC, valued at approximately $54.4 billion as of today. This represents 48.82% of the total bitcoin held by the twelve funds. Traded on the Nasdaq, Blackrock’s dominance underscores its stronghold in the cryptocurrency market.
Grayscale and Fidelity Follow
Trailing Blackrock, Grayscale’s GBTC ranks second with 207,100.18 BTC, valued at roughly $20.3 billion. GBTC, which trades on the New York Stock Exchange (NYSE), has seen significant changes this year, shedding nearly 400,000 BTC from its reserves after transitioning from OTC trading to a public listing. Despite this reduction, it remains a key player.
Fidelity’s FBTC fund, trading on Cboe, claims the third spot with 203,194.05 BTC, equivalent to $20 billion. The rapid accumulation of bitcoin by Blackrock’s IBIT and Fidelity’s FBTC highlights their aggressive strategies and underscores their significant influence in the market. Together, these three giants control over 85% of the total bitcoin reserves held by U.S. spot ETFs.
Other Notable Players
Ark Invest’s and 21Shares’ ARKB fund holds 47,013 BTC, valued at $4.6 billion, trailing far behind the top three. Similarly, Bitwise’s BITB fund manages 40,909.86 BTC, while Grayscale’s Bitcoin Mini Trust secures 38,275.49 BTC. These three funds form a secondary tier, with reserves that, while substantial, are dwarfed by the holdings of Blackrock, Grayscale’s GBTC, and Fidelity’s FBTC.
Smaller players include Vaneck’s HODL fund, holding 13,716.827 BTC ($1.3 billion), and CoinShares’ Valkyrie BRRR with 9,069.3 BTC ($892 million). Invesco’s BTCO (8,780 BTC) and Franklin Templeton’s EZBC (7,624.52 BTC) follow closely, while Wisdomtree’s BTCW holds 3,841 BTC. Hashdex’s DEFI fund rounds out the list with 148 BTC, valued at $14.5 million.
A Historic Milestone in Crypto Adoption
The accumulation of over a million bitcoins by U.S. spot ETFs in their first year signals a seismic shift in cryptocurrency investment accessibility. The dominance of Blackrock, Grayscale, and Fidelity demonstrates the concentrated nature of institutional crypto adoption and highlights the competitive dynamics shaping this emerging sector.
The stark disparity between top-tier funds and smaller players hints at potential consolidation in the bitcoin ETF market. Moreover, the rapid rise of traditional financial giants within this space reflects their ability to leverage existing infrastructure and investor trust to establish dominance. As these funds continue to evolve, their collective bitcoin holdings—a significant portion of Bitcoin’s circulating supply—are poised to influence market dynamics and shape the trajectory of institutional adoption in the years ahead.
