Since the SEC approved over a dozen spot Bitcoin ETFs in January 2024, institutional players have raced to attract clients with fierce competition. Giants like BlackRock (IBIT) and Fidelity (FBTC) have seen their holdings surge, while newcomers like Bitwise (BITB) and Ark Invest's ARKB have also aggressively accumulated Bitcoin. These four have emerged as the "Big Four" in the U.S. spot Bitcoin ETF market.
Within just 20 days of approval, nine of these ETFs collectively purchased over 216,000 BTC. This figure already exceeds the 190,000 BTC accumulated by MicroStrategy, a well-known Bitcoin hoarder, over more than three years of relentless buying.
Spot ETFs have genuinely brought substantial buying power to Bitcoin—a force that cannot be underestimated. This robust demand from the U.S. stock market has officially positioned Bitcoin spot ETFs as the most popular ETFs in Wall Street history!
The chart above illustrates the influx of funds within the first month of ETF trading. BlackRock's IBIT leads the pack, followed by Fidelity's FBTC, both leaving other ETF products far behind.
Their performance also significantly outshines that of the gold ETF (represented by GLD in the chart).
However, why has the market remained relatively calm since the ETFs launched, even as issuers continue to buy aggressively? On January 11, BTC peaked at $48.9k. By February 11, it had just reclaimed the $48k level.
The key lies in the counterparties to these institutions. Retail holders with less than 1 BTC, mid-tier holders with 1-10 BTC, and large holders with 10-100 BTC have all been net sellers over the past 30 days.
Only institutions holding over 100 BTC have consistently added to their positions.
Clearly, the main theme of the past month has been "rotation."
Buying and selling forces have reached a dynamic equilibrium. Retail investors have relinquished their BTC, while institutions have hoarded them.
Those who sold their chips at $40k may likely repurchase them at a much higher cost when prices exceed $100k.
In this covert battle over ETF influence and Bitcoin control, retail and institutional investors move in opposite directions, passing each other silently in the night.
Frequently Asked Questions
What are Bitcoin spot ETFs?
Bitcoin spot ETFs are exchange-traded funds that hold actual Bitcoin, allowing investors to gain exposure to its price movements without directly owning the cryptocurrency. They trade on traditional stock exchanges, providing a regulated and accessible investment vehicle.
How do Bitcoin ETFs compare to gold ETFs?
Bitcoin ETFs have demonstrated significantly stronger initial inflows and demand compared to gold ETFs. For instance, within their first month, leading Bitcoin ETFs like IBIT and FBTC attracted far more capital than the popular gold ETF (GLD) did during its debut period.
Why did the Bitcoin price remain stable despite massive ETF buying?
The market experienced a rotation where retail investors sold their holdings while institutions accumulated them. This created a balance between buying and selling pressure, preventing significant price volatility despite substantial ETF inflows.
Which are the major Bitcoin spot ETFs?
The "Big Four" spot Bitcoin ETFs include BlackRock's IBIT, Fidelity's FBTC, Bitwise's BITB, and Ark Invest's ARKB. These have led in terms of assets under management and Bitcoin holdings since their launch.
How can I track the performance of these ETFs?
You can monitor their holdings and flows through financial data platforms or the issuers' official websites. Many platforms provide daily updated information on assets under management and Bitcoin reserves. 👉 Explore real-time ETF tracking tools
Are Bitcoin ETFs a safe investment?
Like any investment, Bitcoin ETFs carry risks, including market volatility and regulatory changes. They offer a regulated way to access Bitcoin but should be evaluated within the context of your overall investment strategy and risk tolerance. 👉 Learn more about investment strategies