Crypto News

Spot Bitcoin ETFs Now Hold 1% of Total Supply as Price Hits $52K

Bitcoin price has soared above the $52,000 price mark as the spot Bitcoin ETF products now hold about 1% of the total coin's supply

Published by

Godfrey Benjamin

Published 14 Feb, 2024 | 03:58:47 PM UTC

Spot Bitcoin ETFs Now Hold 1% of Total Supply as Price Hits $52K

Highlights

Spot Bitcoin ETFs now have almost 1% of total BTC supply locked
BlackRock and Fidelity keep leading the market momentum
ETF sentiment has pushed Bitcoin price beyond $52,000 mark

The spot Bitcoin ETF market is seeing impressive traction with the total value locked has now surpassed 216,309 BTC from 9 active issuers.

Spot Bitcoin ETF Milestones

Since the spot BTC ETF products have been greenlighted by the United States Securities and Exchange Commission (SEC), there has been a consistent inflow into the market as institutional investors turned up to embrace the asset class.

According to market analyst Lark Davies, the 216,309 BTC held by 9 spot Bitcoin ETF issuers besides Grayscale now represents 1% of the maximum final BTC supply.

An intriguing data insight shows that the spot BTC ETF holdings have now collectively surpassed the more than 190,000 BTC accumulated by MicroStrategy since the business intelligence and software firm started acquiring Bitcoin since August 2020.

The data presented by Lark Davies shows the highest inflow came in on February 9 with BlackRock’s IBIT and Fidelity Investment’s FBTC taking the lion’s share of the total accumulated Bitcoin. The data also depicts how there has been a steady rise in the respective allocation per Bitcoin under management by each of the spot Bitcoin ETF issuers.

Though not depicted by the charts, BkackRock’s IBIT now has more than $5 billion in AUM with Fidelity and Ark 21Shares’ ARKK making the top three spot Bitcoin ETFs to cross the $1 billion milestone. The traction has further complimented the growth of the entire ETF, underscoring the impact of the marketing war that ensued earlier on when the products were approved.

Impact on Bitcoin Price

The growth and the sentiment surrounding the spot Bitcoin ETF market are impacting the price of BTC in a positive way. After thrilling the broader industry with a break above $50,300, the first price level in 3 years, the coin has now soared toward the $52,000 price mark.

At the time of writing, Bitcoin price is changing hands for $51,808.65 as its 24-hour growth has cooled down to 6.18%, sending the market capitalization to $1,017,307,814,467. Bitcoin has retained its luster with many analysts forecasting as high as a $200,000 price mark before the halving event later in the second quarter.

The Bitcoin resurgence has also triggered a similar run in the altcoin world underscoring the universality of the current bull market.

Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin

Published by

Godfrey Benjamin

Published 14 Feb, 2024 | 03:58:47 PM

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.