Investments in ETFs have been massive, exceeding USD 34.5 billion accumulated. BlackRock is the ETF issuer that has the most BTC in custody. More than half a million bitcoin (BTC) is in the custody of the companies issuing spot exchange-traded funds (ETFs) traded in the United States. This reflects the massive investment in these financial products, which has exceeded USD 34.5 billion accumulated. According to data from research firm K33 Research, flows into the dozen bitcoin spot ETFs so far this year have exceeded 500,000 BTC. This means that bitcoin ETFs traded in the US They have absorbed more than 2.5% of the circulating supply since their launch in January.
More than 500,000 BTC are in the custody of the ETFs. Source: K33 Research. The accumulation of bitcoin by ETFs is the result of massive investments by institutional investors. So far, the total cumulative net inflow into BTC ETFs is $34.58 billion, according to SosoValue data. On Wednesday alone, total daily net inflow was $223 million. This increase in investment has been predictable and has played an important role in the price of the digital currency. Spot ETFs influence the price of BTC primarily because they offer investors a direct way to gain exposure to bitcoin without the need to handle the coins directly. At the close of this report, 1 BTC is trading around USD 101,200. By purchasing shares of an ETF, investors are in effect investing in bitcoin, which increases demand and, therefore, the price of the digital currency. Additionally, these ETFs facilitate the entry of institutional capital into the cryptocurrency market, driving up the price due to increased liquidity and confidence in the asset. Of all the issuers, BlackRock, with its IBIT ETF, is the one that accumulates the most BTC. BlackRock alone holds more than half a million bitcoin, which is equivalent to 2.3% of the supply, as reported by BitcoinDynamic. This massive accumulation by one of the world's largest asset managers underlines the growing acceptance of bitcoin as a legitimate investment asset. The accumulation of bitcoin by ETFs not only reflects an investment trend, but also a long-term strategy to diversify portfolios. This trend could continue, especially if regulation remains favorable and if companies continue finding in bitcoin an asset with growth potential.