Less than a year after their debut, U.S. spot Bitcoin exchange-traded funds (ETFs) have surpassed a major milestone, collectively recording over 500,000 BTC in cumulative net inflows. The achievement, reached on Wednesday, highlights the growing popularity and influence of these investment products in the cryptocurrency market.
Key Figures and Milestone Details
The 12 U.S. spot Bitcoin ETFs launched on January 11, 2024, have absorbed more than 2.5% of Bitcoin’s circulating supply, currently estimated at 19.8 million BTC. This equates to over 500,925 BTC in total inflows, according to K33 Head of Research Vetle Lunde. On Wednesday alone, $223.1 million flowed into these ETFs, led by Fidelity’s FBTC fund, which accounted for $121.9 million of the total.
Year-to-date, the ETFs have maintained a 10-day inflow streak, amassing nearly $4.3 billion in assets with $34.7 million in net inflows in dollar terms since launch.
Performance Highlights
- BlackRock’s IBIT ETF leads the pack with over 520,000 BTC in on-chain holdings, surpassing BlackRock’s iShares Gold Trust (IAU) in terms of assets under management (AUM), which now exceed $50 billion.
- Fidelity’s FBTC ETF follows with over 247,000 BTC.
- Grayscale’s GBTC fund, initially holding 619,000 BTC before its conversion to an ETF, now has 210,000 BTC after significant outflows.
The combined holdings of the U.S. spot Bitcoin ETFs have also overtaken the estimated 1.1 million BTC attributed to Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Market Impact and Investor Sentiment
This milestone reflects a shift in institutional and retail investor sentiment, with Bitcoin ETFs providing a regulated, accessible gateway to cryptocurrency exposure. BlackRock’s IBIT ETF is a standout, with CryptoQuant CEO Ki Young Ju remarking on its dominance: “Smart money already knows the winner… Be on the right side of history.”
Bitcoin’s market capitalization remains significantly smaller than gold’s $17 trillion, but these ETF inflows underscore Bitcoin’s growing acceptance as a digital asset with long-term potential.
Looking Ahead
As U.S. spot Bitcoin ETFs continue to attract inflows and reshape market dynamics, their rapid growth highlights the demand for secure and transparent crypto investment vehicles. This trend may further bolster Bitcoin’s integration into mainstream financial markets.
