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Aggressive Accumulation, Wall Street-Style: New Bitcoin ETFs Now Hold Over 500,000 BTC

Largest asset management firms are stockpiling BTC through ETFs

The new crop of spot Bitcoin ETFs has remarkably accumulated over 500,000 BTC since their launch on January 11. This rapid acquisition positions them as holding a significant 2.54% of Bitcoin's current circulating supply, underscoring a growing investor appetite for cryptocurrency through regulated investment vehicles. In just 54 trading days, these nine ETFs have catapulted to a staggering valuation, with their Bitcoin holdings now worth approximately $35 billion. 

Farside Investors highlights this milestone achievement, noting the ETFs scooped up an additional $287.7 million in Bitcoin in a single day. The broader landscape of U.S. spot Bitcoin funds, including Grayscale, now commands nearly 4% of the total Bitcoin supply, amassing 835,000 BTC. This week alone, ETF inflows have rebounded robustly, with $845 million recorded, signaling a strong reversal from previous outflows that began on March 18.

Market dynamics and future prospects

The dynamics of Bitcoin investment have taken an interesting turn with the latest figures revealing a total of $183 million in inflows on March 28, with BlackRock's IBIT fund at the forefront, receiving $95 million. Fidelity and Bitwise each witnessed inflows nearing $67 million, while Ark 21Shares enjoyed a substantial $27.6 million, buoyed by a remarkable $200 million influx the preceding Wednesday. 

In contrast, Grayscale's GBTC fund experienced its lowest outflow since March 12, at $105 million, reducing its holdings by approximately 284,846 BTC since transitioning to a spot ETF in mid-January. Amidst these developments, Bitwise has made headlines with its March 28 S-1 application to the SEC for a spot Ethereum ETF, stirring the pot of speculation regarding the future of cryptocurrency ETFs. 

ETF analyst Eric Balchunas voiced cautious optimism, pegging the approval chances for an ETH ETF in May at a skeptical 25%, hinting at the uncertainty looming over the SEC’s decision-making process as the deadline approaches.