According to data from cryptocurrency data platform CoinGecko, the total number of Bitcoin held by Bitcoin-related ETF (futures/spot) issuers currently listed globally is approximately 793,034 BTC, with Grayscale holding the largest position of 622,657 BTC.
Background:
Bitcoin Spot ETF Approval Date: Galaxy Digital predicts it will be approved by the SEC before January 10, 2024, as Grayscale’s lawsuit clears the way.
Table of Contents:
1. Grayscale’s holdings account for 3% of total Bitcoin supply.
2. Will the conversion of Grayscale’s GBTC to a spot ETF release a large amount of BTC selling pressure?
3. Top 20 Bitcoin ETF asset sizes.
4. SEC hints at approval in January.
The U.S. Securities and Exchange Commission (SEC) is currently reviewing Bitcoin spot ETF applications submitted by issuers such as BlackRock and Grayscale. It is widely believed that the first Bitcoin spot ETF will be launched in early January 2024, making Bitcoin a mainstream investment for traditional financial institutions.
Grayscale, which is currently applying to convert its Bitcoin trust fund GBTC into a spot ETF, holds 622,657 BTC, surpassing MicroStrategy, the Bitcoin holder among U.S. listed companies, and nearly four times the total holdings of other Bitcoin-related ETFs. Currently, Grayscale’s GBTC can only be traded on specific secondary markets. If the transformation is successful, it will allow for free trading of spot BTC, providing convenience for investors. However, it also means that over 620,000 BTC will be released into the market, potentially causing significant selling pressure on the current Bitcoin price.
Analysts from JPMorgan stated in a report at the end of November that the net cumulative inflow into GBTC reached approximately $2.5 billion since the beginning of this year. Including short covering since the beginning of the year, the selling pressure could reach $2.7 billion.
CoinGecko also pointed out in the report that global Bitcoin-related ETF issuers currently control only a small portion of Bitcoin spot holdings. Even if Bitcoin spot ETFs are approved in the future, whether they will have a significant impact on Bitcoin prices remains to be seen.
Top 20 Bitcoin ETF Asset Sizes:
According to CoinGecko’s statistics as of December 22, 2023, the total funds of the top 20 global Bitcoin ETFs are less than $20 billion. The largest one is XBT Provider Bitcoin Tracker One (COINXBT) from Sweden, with a fund size of $7.11 billion. However, the second-place ProShares Bitcoin Strategy ETF (BITO) has a fund size of only $1.63 billion, far behind COINXBT. The last one, ProShares Short Bitcoin Strategy ETF (BITI), has the smallest fund size of only $54.86 million.
Source: CoinGecko
SEC Hints at Approval in January:
Regarding the latest progress of Bitcoin spot ETFs, according to Reuters’ report citing insiders, SEC officials met with representatives from at least seven issuers who plan to launch such ETFs in early 2024 on Thursday last week and informed at least two companies to submit final changes to their applications by the 29th. This has increased market expectations for the probability of the SEC approving spot ETFs in mid-January. However, it is worth noting that executives from the two companies who met with the SEC stated that during the meeting, the SEC informed them that any issuer who cannot complete the changes before the deadline will not be among the first potential approved Bitcoin spot ETFs in early January.
Related Reports:
– VanEck Updates Bitcoin Spot ETF Investment Prospectus for the Fifth Time
– Will Bitcoin See a Christmas Rally? Reviewing Bitcoin’s Price Trends Over the Years
– Explainer: Why Does the SEC Favor Bitcoin Spot ETFs with Cash Redemptions? What’s the Difference from Physical Redemption?
Tags:
BTC
btc etf
ETF
Bitcoin
Bitcoin spot ETF
United States