Without a doubt, the approval of various Bitcoin spot ETFs was the catalyst event of January. Here is the analysis of the numbers and news of the different projects launched, from Grayscale to Blackrock.
The recent developments highlight a significant change in market dynamics, as Grayscale’s GBTC has recorded a withdrawal of 50,106.59 BTC since January 12, 2024.
At the same time, recently launched nine Bitcoin spot ETFs have accumulated a total of 81,366 BTC, with a value of approximately $3.39 billion.
This article delves into the intricate details of these developments, focusing on key players such as Grayscale, Blackrock, and Fidelity, and analyzing asset distribution and custody strategies.
Summary
Analysis of holdings in the Spot Bitcoin ETF: the news from Blackrock, Grayscale, and Fidelity
The Grayscale domain:
Grayscale’s GBTC remains the foremost custodian of Bitcoin, ensuring an impressive wealth of 566,973.40 BTC, with an estimated value of $23.5 billion.
Despite a recent withdrawal, GBTC holds an impressive 87.45% of the total BTC held by US Bitcoin ETFs, reaffirming its strong position in the market.
IBIT by Blackrock and FBTC by Fidelity:
The Blackrock’s IBIT emerges as the second largest holder among US-based Bitcoin spot ETFs, with 28,622 BTC, worth approximately $1.19 billion.
Following, the Wise Origin ETF (FBTC) by Fidelity secures the position of the second largest holder of Bitcoin, with 24,857 BTC, surpassing the billion-dollar valuation. Together, Blackrock and Fidelity’s ETFs constitute 65.72% of the total BTC held by the nine recently introduced Bitcoin spot ETFs.
Other notable ETFs:
BITB by Bitwise controls 10,136 BTC, worth just over $422 million, while Ark Invest and 21shares ETFs represent 7,565 BTC, worth $315.62 million.
Invesco Galaxy ETF holds 6,143 BTC, with a value of $256 million. Vaneck, Valkyrie, and Franklin Templeton ETFs hold 2,150 BTC, 1,712 BTC, and 1,160 BTC respectively. The smallest collection is attributed to Wisdomtree spot Bitcoin ETF, which holds 111 BTC with a value of $4.62 million.
Custody strategies
Coinbase Domain:
One notable revelation is that eight out of ten US Bitcoin spot ETFs have chosen Coinbase as their custodian, safeguarding a total of 621,332 BTC or 95.83% of the total held by all ten funds.
This underlines Coinbase’s fundamental role in ensuring the vast majority of Bitcoin assets within Bitcoin spot ETFs.
Fidelity Independent Custody:
Contrary to Coinbase’s trend, Fidelity opts for an independent approach, using its own custody service to protect its holdings of 24,857 BTC. This strategic decision reflects a diversification of custody strategies within the market.
Gemini’s selection by Vaneck:
Vaneck further diversifies the custody of its BTC deposits by entrusting Gemini with the custody of its ETF-linked BTC, amounting to 2,150 BTC.
This choice exemplifies the growing importance of strategic custody partnerships in the cryptocurrency investment space.
Conclusions
The current state of spot Bitcoin ETFs presents a dynamic landscape characterized by the dominance of Grayscale’s GBTC, the influence of important players like Blackrock and Fidelity, and a diverse range of custody strategies.
As these ETFs navigate the complexities of the cryptocurrency market, asset distribution and custody decisions will undoubtedly continue to shape the trajectory of this evolving sector.
Investors and enthusiasts should closely follow these developments to understand the ever-evolving dynamics of the cryptocurrency investment landscape.
