Bitcoin Spot ETFs hit $10 Billion milestone just one month after approval

[hd49728]

Spot ETFs scooping up Bitcoin like crazy is impressive especially compared to Microstrategy's slower accumulation. Predicting year-end holdings is tricky because the crypto market is wild like regulations, public opinion and economic shifts can throw things off. While more growth is likely, putting an exact number on it is like trying to predict the weather in a storm

There are 11 Bitcoin Spot ETFs while only 1 MicroStrategy so this comparison is basically wrong. We can compare them just for rough information but with awareness that it is wrong comparison.

The accumulation from Bitcoin Spot ETFs is only at beginning and they will accumulate more Bitcoin, not only in this 2024 - 2025 bull run but in future years. Some says "Don't sell your bitcoin to Wall Street" and I agree with this saying.

How about people who are still worrying that will Bitcoin make a new all time high, will have to think of their fear again and again.

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[thecodebear]

It'll certainly be interesting to see how the ETF holdings grow and its effect on the bull market. Hitting new ATHs may very well come months earlier than expected. Well, we have already seen that each market cycle more and more people front-run the main part of the bull run. In 2017 the real explosive growth started around end of April, but next cycle it started in like Nov/Dec 2020, even though the halving period is only a month or two short of 4 years, so the 2020/2021 bull run came several months earlier that in 2017. With the help of ETFs buying up hundreds of thousands of bitcoin we may very well see the ATH this year get hit before end of the summer with the price continuing to boom after that. Though if it does come that early, I wonder if the bull run will still last until late 2025, or if it'll actually end around middle of next year.

Great interest in the ETFs so far. Hopefully we keep seeing them pull in 9 figure dollar amounts daily.

[thecodebear]

Spot ETFs scooping up Bitcoin like crazy is impressive especially compared to Microstrategy's slower accumulation. Predicting year-end holdings is tricky because the crypto market is wild like regulations, public opinion and economic shifts can throw things off. While more growth is likely, putting an exact number on it is like trying to predict the weather in a storm

There are 11 Bitcoin Spot ETFs while only 1 MicroStrategy so this comparison is basically wrong. We can compare them just for rough information but with awareness that it is wrong comparison.

Yeah I've seen several people over the past month compare the ETF holdings to Microstrategy's holdings. The comparison doesn't make any sense. Comparing a single moderately sized corporation's holdings to an entire US ETF market for Bitcoin. That's like comparing apples and dolphins haha. Obviously the entire ETF market was going to vastly and quickly outstrip what a single $500 million dollars a year company can buy lol.


Besides, when you include all the GBTC selling, the ETF market has only actually added 50k BTC so far. At current price thats $2.5 billion AUM. Which is pretty fantastic for one month considering that probably several billion dollars left the market entirely through Grayscale, but still not close to what Microstrategy has at 190k Bitcoin. It'll take the ETF market several more months to have its net growth surpass Microstrategy's holdings. But as you said, its a nonsense comparison anyway.

[avikz]

It is quite unfortunate that such a huge amount of investment did not come to the Bitcoin market directly, rather it had been directed through the centralised entities. If this pace continuous, these corporates can easily out perform the retail investment segment. Probably that will mark and end to the decentralised nature of Bitcoin.

I was never much comfortable about this week corporates buying into Bitcoin. With their money power they can become the dominant players in the market and can manipulate the market as per their wish.

[darkangel11]

All the US spot bitcoin ETFs now hold a combined total of 192,000 bitcoin assets under management, recently surpassing Microstrategy's holdings of 190,000.

The difference is it took Michael Saylor two to three years to amass that amount. The Spot bitcoin ETFs did it in one month! That is crazy.

I don't think it's ok to compare an achievement of a number of multi billion dollar companies to a single one.
Microstrategy as a whole is worth close to 11 billion, while BlackRock alone is worth almost 120 billion, while Fidelity manages assets worth 4.5 trillion dollars.
Microstrategy showed them the way, but it's like a mouse on the path of an elephant. It will always be remembered as a precursor of institutional investments, but a year from now it's going to be so small compared to these guys that nobody will ever mention it in comparison.

It is quite unfortunate that such a huge amount of investment did not come to the Bitcoin market directly, rather it had been directed through the centralised entities. If this pace continuous, these corporates can easily out perform the retail investment segment. Probably that will mark and end to the decentralised nature of Bitcoin.

Should we care? Eventually they'll run out and will need your botcoin and the one that all the legacy holders have. After all, there used to be only 3 million available on exchanges and I believe this is now much lower. Supply squeeze anyone?

[Volimack]

As far as I understand bitcoin spot ETF approval has a positive impact ETF approval increases both market efficiency and accessibility but bitcoin futures are a bit harder to predict. The crypto market is not stable but seeing the price go up a lot it doesn't take long to sink so it's just an investment hope. When it comes to growth nothing can stop bitcoin.

[Lucius]

~snip~
How many bitcoin do you think these funds will hold by the end of the year? Over a million? The sky is the limit.

Maybe 500k BTC, maybe 1 million BTC - but doesn't anyone think that spot BTC ETFs are not a one-way street and what will happen when all of them (or most BTC) go in the other direction? People who invest in this way have no other intentions than to profit, so even though it looks incredibly positive for the price right now, I think the next bear market will be one of the toughest we've had yet.

But there is no point in speculating about it and spoiling the moment of great enthusiasm, because the bulls have finally woken up and are destroying everything in front of them.

[thecodebear]

It is quite unfortunate that such a huge amount of investment did not come to the Bitcoin market directly, rather it had been directed through the centralised entities. If this pace continuous, these corporates can easily out perform the retail investment segment. Probably that will mark and end to the decentralised nature of Bitcoin.

I was never much comfortable about this week corporates buying into Bitcoin. With their money power they can become the dominant players in the market and can manipulate the market as per their wish.

I think people don't understand what decentralization is. Bitcoin is decentralized because of nodes and miners, not because of owners. People buying Bitcoin through ETFs so that these bitcoin are held by institutions in no way diminishes Bitcoin's decentralization. The ETFs have zero effect on nodes and miners.

You say its unfortunate this is not coming from the Bitcoin market directly. But the Bitcoin market IS anyone buying Bitcoin. ETFs are simply part of the Bitcoin market now. They've expanded the Bitcoin market, which is a great thing. Good money is both a transactional unit and a savings/investable unit, and ETFs simply make use of its great savings/investable property. All of this is the Bitcoin market. Like, you realize the "Bitcoin market" you are referring to is already centralized crypto exchanges right? haha. It's all the Bitcoin market, and most of the market buys through centralized entities, and some of the market participants have always kept their Bitcoin with these entities, which of course is the case with ETFs.


People seem to get very confused about what decentralization is, and their confused version of it makes them want to gate-keep Bitcoin and stop anyone with money or any govt or any company or any finance firm from buying Bitcoin, which is very against the ideals of Bitcoin.

All the US spot bitcoin ETFs now hold a combined total of 192,000 bitcoin assets under management, recently surpassing Microstrategy's holdings of 190,000.

The difference is it took Michael Saylor two to three years to amass that amount. The Spot bitcoin ETFs did it in one month! That is crazy.

I don't think it's ok to compare an achievement of a number of multi billion dollar companies to a single one.
Microstrategy as a whole is worth close to 11 billion, while BlackRock alone is worth almost 120 billion, while Fidelity manages assets worth 4.5 trillion dollars.
Microstrategy showed them the way, but it's like a mouse on the path of an elephant. It will always be remembered as a precursor of institutional investments, but a year from now it's going to be so small compared to these guys that nobody will ever mention it in comparison.

And in fact that comparison is worse than what you state. It's not even comparing one company to 11 companies. It's comparing one company to the entire US TradFi industry! Any TradFi investor who doesn't want to bother actually owning bitcoin, or any financial fund that literally can't own Bitcoin because Bitcoin isn't part of TradFi (ie retirement accounts, investment funds with rules on what they can buy), can only gain access to Bitcoin through the ETFs.

So it's comparing a single moderately sized corporation to literally millions of people and many companies combined haha.

[kryptqnick]

That's some impressive growth of a new industry, although not surprising because investment companies have been applying for Bitcoin ETFs for many years, which means that the demand for them has been around for a while. Thankfully, there's plenty of Bitcoin to go around, and 192k BTC is a little below 1% of the current circulating supply.
I don't think that this growth will continue at such a rapid pace, though. I'd be surprised to see 1 million BTC in ETFs in a year, for example. Then again, that would be just $52 billion worth of BTC, which also isn't that much in the grand scheme of things, so maybe it is a realistic assumption (assuming that the price doesn't change drastically).

[pawanjain]

So that's the reason why we have been seeing a good pump in BTC price in last few days.
Bitcoin has crossed $50k price for which we have been waiting a long time. Good to see BTC price back above $50k.

I think people don't understand what decentralization is. Bitcoin is decentralized because of nodes and miners, not because of owners. People buying Bitcoin through ETFs so that these bitcoin are held by institutions in no way diminishes Bitcoin's decentralization. The ETFs have zero effect on nodes and miners.

While that is true one important fact is that if a single entity holds a large amount of BTC it gives them direct power to manipulate the market.
It becomes easier for an entity to manipulate the price if it holds huge amount of that asset.

[franky1]

While that is true one important fact is that if a single entity holds a large amount of BTC it gives them direct power to manipulate the market.
It becomes easier for an entity to manipulate the price if it holds huge amount of that asset.

unlocking coin from custody(to day-trade coin) is a situation of needing to undo share purchases to have unallocated shares, to then request to dissolve unallocated shares and unlock said coin..
these institutions are not going to use coins locked into ETF to day-trade spot. many securities laws and custody policy doesnt make it easy

however they may have extra coin not locked. which they can play on the spot market

.. much like whales had coins locked in futures contracts, but used a separate stash on the spot market to keep the prices down so their futures contracts fulfilled