These Companies Now Hold $13.70 Billion in Bitcoin (BTC)

8 months ago 2

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A cluster of companies has amassed a staggering $13.70 billion in Bitcoin (BTC). This marks a significant milestone in the cryptocurrency market.

The massive accumulation reflects a growing confidence in Bitcoin as a viable investment. It also mirrors its recent price upsurge and increasing appeal among institutional investors.

ETF Issuers Buy $13.70 Billion in BTC

The spotlight shines brightly on Bitcoin exchange-traded funds (ETFs). These financial products have experienced a robust capital inflow, surpassing $2.2 billion between February 12 and February 16. This investment surge catapults Bitcoin ETFs ahead of the 3,400 ETFs in the United States.

Bloomberg analyst Eric Balchunas highlighted the sheer dominance of these inflows. He particularly noted the BlackRock’s iShares Bitcoin Trust (IBIT), which alone garnered $1.6 billion over the week.

“The 10 Bitcoin ETFs netted over $2.3 billion last week… IBIT alone was number 2. This brings the total net to over $5 billion, which is more than BlackRock as a whole has taken in. Again, this is all net GBTC bleed. Throw that out, and the numbers get even crazier,” Balchunas explained.

This is a testament to the growing investor appetite for Bitcoin. Indeed, significant inflows into other prominent spot Bitcoin ETFs are further evidence of it. For instance, Fidelity’s Wise Origin Bitcoin Fund and the Ark 21Shares Bitcoin ETF have also seen considerable capital injections, reflecting the diversified interest in Bitcoin investments.

Issuer	Ticker	BTC Holdings
BlackRock	IBIT	115,989.80
Fidelity	FBTC	83,928.16
Ark/21 Shares	ARKB	26,640
Bitwise	BITB	21,974
Invesco/Galaxy	BTCO	6,048
VanEck	HODL	3,620.53
Valkyrie	BRRR	2,931.56
Franklin Templeton	EZBC	1,885
WisdomTree	BTCW	509
	Total BTC Holdings	263,526.06

Bitcoin ETFs Holdings. Source: TheTIE

Despite the optimistic influx, the Grayscale Bitcoin Trust encountered $624 million in outflows. However, the overarching narrative remains bullish since the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC).

This regulatory nod has propelled Bitcoin’s price, which has surged 95% over the past six months, reflecting the positive market sentiment toward cryptocurrencies.

The resurgence in Bitcoin’s appeal is not limited to ETFs alone. Major banks and financial institutions are keenly observing the market. Some advocate for regulatory adjustments to accommodate the growing demand for Bitcoin custodianship. This reflects a broader acknowledgment of Bitcoin’s potential to redefine investment portfolios and its role as a contemporary asset class.

Investors Offload Gold ETF Holdings

Bitcoin’s ascent is mirrored in its comparative performance against traditional safe havens like gold. The digital currency’s year-to-date increase of 23% starkly contrasts with gold’s modest decline. Therefore, it highlights a shifting investor preference toward digital assets.

This shift is evidenced by the substantial outflows from gold ETFs, a trend that starkly contrasts with the previous year’s inflows.

“It’s a pretty bad scene right now in the gold ETFs category. To be sure, I don’t think these are people migrating to Bitcoin ETFs, maybe a tiny bit, but rather just us equity FOMO although that could reverse given the new eco data,” Balchunas emphasized.

Ticker	Name	YTD Flows
OUNZ	VanEck Merk Gold Shares	-16.1
IGLD	FT Vest Gold Strategy Target Income ETF	-3.8
GLL	ProShares UltraShort Gold	-1.4
AAAU	Goldman Sachs Physical Gold ETF	-6.8
UGL	ProShares Ultra Gold	-9.1
DBP	Invesco DB Precious Metals Fund	-9.7
BAR	Graniteshares Gold Trust	-12
IAUF	iShares Gold Strategy ETF	-13.4
GLDM	SPDR Gold MiniShares Trust	-16.3
GLTR	abrdn Physical Precious Metals Basket Shares ETF	-22
SGOL	abrdn Physical Gold Shares ETF	-41.1
IAUM	iShares Gold Trust Micro	-230.4
IAU	iShares Gold Trust	-423.6
GLD	SPDR Gold Shares	-2,394.6

Gold ETFs Year-to-Date Flows. Source: Bloomberg

The array of companies accumulating Bitcoin, including BlackRock, Fidelity, Ark/21 Shares, and Bitwise, among others, signifies a pivotal moment in the financial markets. With a total holding of 263,526.06 BTC, these entities are pioneers in a financial revolution.

As Bitcoin continues to challenge traditional investment paradigms, its acceptance among institutional investors starts a new era of digital asset integration into mainstream financial portfolios.