- Bitcoin ETF holdings have surpassed MicroStrategy’s bitcoin reserves and now amount to over 192,000 BTC, demonstrating the rising popularity of these funds.
- MicroStrategy holds around 189,000 bitcoin purchased at an average price of $30,700 per token, while bitcoin ETFs held less than 20,000 BTC at the end of 2021.
- Grayscale’s Bitcoin Trust is the largest bitcoin ETF with over 654,000 BTC, and the growth of bitcoin ETFs signals their increasing importance among institutional crypto investors.
Exchange-traded funds (ETFs) tracking the price of bitcoin have accumulated a significant amount of the cryptocurrency. As of Wednesday, bitcoin ETFs held a combined 192,255 bitcoin, exceeding the bitcoin reserves of MicroStrategy, the largest publicly traded corporate holder.
Bitcoin ETF Holdings Surpass MicroStrategy’s Stash
MicroStrategy currently holds about 189,000 bitcoin. The business intelligence firm started buying bitcoin in 2020 and has accumulated about 129,200 bitcoin at an average price of $30,700 per token.
In comparison, the total bitcoin held in ETFs has climbed rapidly since the first futures-based bitcoin ETF launched in October 2021. The bitcoin ETFs led by asset managers like Grayscale, Valkyrie, and VanEck held less than 20,000 bitcoin at the end of 2021. But now, they hold over 192,000, beating out MicroStrategy.
The Rising Popularity of Bitcoin ETFs
The growth in bitcoin ETF holdings highlights the rising popularity of these funds among institutional investors. ETFs provide an easy way for investors to gain exposure to bitcoin prices without having to personally custody the cryptocurrency.
Grayscale’s Bitcoin Trust (GBTC) is the largest bitcoin ETF, holding over 654,000 BTC. But GBTC is not included in the 192,000 BTC held by ETFs referenced earlier, as it is technically a trust, not an ETF. Still, GBTC‘s substantial bitcoin reserves further demonstrate institutional demand for passive bitcoin investment vehicles.
With the ongoing growth of bitcoin ETFs, their holdings could soon surpass other major bitcoin investors like Tesla. As more institutional players turn to ETFs for bitcoin exposure, these funds will continue accumulating larger stacks of the cryptocurrency. The expanding bitcoin treasuries held by ETFs underscores their increasing importance in the crypto sector.
In summary, bitcoin ETFs have seen rapid growth and now hold more bitcoin than MicroStrategy’s corporate reserves. The rising popularity of bitcoin ETFs with institutional investors is allowing these funds to quickly amass substantial bitcoin holdings. As ETFs continue growing, they could become some of the largest bitcoin investors in the near future.