1 Million Bitcoins Now Held in ETFs Reflecting Increased Market Demand

As of November 2024, Bitcoin exchange-traded funds (ETFs) have reached a major milestone, collectively holding over 1 million bitcoins, representing approximately 5% of the total Bitcoin supply. This represents a clear reflection of growing institutional interest in Bitcoin and the wider acceptance of ETFs as a primary vehicle for Bitcoin investment. The combined value of these holdings is estimated at $67.8 billion based on current market prices.

Among the major players in the Bitcoin ETF space, BlackRock remains the leader, holding a significant portion of the total Bitcoin ETF supply, with 429,636 BTC, worth $29.1 billion. This gives the firm a commanding 42.9% market share. Their ETF, known as IBIT, charges a management fee of 0.25%.

Other large issuers also maintain substantial holdings. Grayscale, with its GBTC fund, holds 218,055 BTC ($14.8 billion), capturing 21.8% of the market share. Fidelity's FBTC holds 185,842 BTC ($12.6 billion), securing an 18.6% share. Similarly, 21Shares with ARKB holds 52,454 BTC ($3.6 billion), making up 5.2% of the total market share.

Smaller issuers, such as Bitwise with its BITB ETF, VanEck with HODL, and Invesco with BTCO, maintain smaller but still notable positions in the market. Notably, Bitwise's holdings have risen to 42,769 BTC ($2.9 billion), while VanEck and Invesco hold 12,889 BTC ($873.6 million) and 9,578 BTC ($649.3 million), respectively.

As more institutional investors turn to Bitcoin ETFs, the dynamics surrounding Bitcoin supply continue to evolve. Recent on-chain activity shows a significant volume of withdrawals and deposits, reflecting market movements and investor sentiment. Notably, BlackRock's IBIT ETF has seen several large deposits, with 600 BTC being deposited multiple times over the last few days in early November, totaling a value of $42 million.

While large inflows into BlackRock's ETF are a positive sign of continued interest, withdrawals are also a regular occurrence. On November 4, there were significant withdrawals from ETFs, such as VanEck's HODL fund, with a withdrawal of 226 BTC ($15 million), and Bitwise's BITB fund, which saw 82 BTC withdrawn ($6 million).

Bitcoin ETF Holdings Breakdown (November 2024):

BlackRock: 429,636 BTC ($29.1B), 42.9% market share, ETF ticker: IBIT, Fee: 0.25%
Grayscale: 218,055 BTC ($14.8B), 21.8% market share, ETF ticker: GBTC, Fee: 1.50%
Fidelity: 185,842 BTC ($12.6B), 18.6% market share, ETF ticker: FBTC, Fee: 0.25%
21Shares: 52,454 BTC ($3.6B), 5.2% market share, ETF ticker: ARKB, Fee: 0.21%
Bitwise: 42,769 BTC ($2.9B), 4.3% market share, ETF ticker: BITB, Fee: 0.20%
Grayscale Mini: 32,781 BTC ($2.2B), 3.3% market share, ETF ticker: BTC, Fee: 0.15%
VanEck: 12,889 BTC ($873.6M), 1.3% market share, ETF ticker: HODL, Fee: 0.25%
Invesco: 9,578 BTC ($649.3M), 1.0% market share, ETF ticker: BTCO, Fee: 0.25%
Valkyrie: 6,853 BTC ($464.5M), 0.7% market share, ETF ticker: BRRR, Fee: 0.25%
Franklin Templeton: 6,291 BTC ($426.4M), 0.6% market share, ETF ticker: EZBC, Fee: 0.19%
WisdomTree: 3,746 BTC ($253.9M), 0.4% market share, ETF ticker: BTCW, Fee: 0.30%

Recent Bitcoin ETF Flows:

Nov 4, 2024: VanEck HODL: -226 BTC (-$15M), Bitwise BITB: -82 BTC (-$6M), Invesco BTCO: -2 BTC (-$114K), 21Shares ARKB: -349 BTC (-$24M), Valkyrie BRRR: -85 BTC (-$6M)
Nov 1, 2024: BlackRock IBIT: +600 BTC ($41M), Bitwise BITB: -611 BTC (-$42M), Grayscale GBTC: -165 BTC (-$12M), 21Shares ARKB: -1,338 BTC (-$93M)
Oct 31, 2024: BlackRock IBIT: +600 BTC ($42M), VanEck HODL: -141 BTC (-$10M), Valkyrie BRRR: -24 BTC (-$2M)