Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, with over 1 million Bitcoins now held in custody by these investment vehicles designed to track the price performance of the cryptocurrency ¹. This milestone marks a significant increase in institutional investment in Bitcoin, with over 30 Bitcoin ETFs collectively owning 1,002,343 Bitcoins as of May 24 ².

The majority of these Bitcoin holdings are held within the U.S. Bitcoin spot ETFs, which were launched in January. The largest funds, the Grayscale Bitcoin Trust and BlackRock's iShares Bitcoin Trust, each hold roughly half of the Bitcoins, with 289,040 Bitcoins and 287,168 Bitcoins, respectively ². Other significant Bitcoin ETFs include the Fidelity Wise Origin Bitcoin Trust (161,538 Bitcoins), the Ark 21Shares Bitcoin ETF (48,444 Bitcoins), and the Bitwise Bitcoin ETF (36,185 Bitcoins) ². Internationally, Canada's Purpose Bitcoin ETF, the first to launch globally, holds 27,110 Bitcoins and remains the largest Bitcoin ETF ².

These holdings represent approximately 5% of the total circulating supply of Bitcoin worldwide, currently valued at $70.5 billion ². Notably, the Bitcoins held by ETFs are almost five times the size of Saylor's personal Bitcoin stash, which amounts to 214,400 Bitcoins ($15 billion) ².

Bitcoin ETFs provide investors with exposure to Bitcoin through the familiar ETF structure, allowing them to include the asset alongside other securities within retirement or tax-advantaged accounts ². These ETFs also enable large institutions to gain exposure to Bitcoin. First-quarter reporting data revealed that over 20% of exposure to U.S. spot Bitcoin ETFs was held by large investors and institutions with total assets exceeding $100 million ². This includes hedge funds, banks, and even the state of Wisconsin's pension fund.

The stability and growth of the ETFs are not just indicators of investor confidence, but also drivers of trading volumes ¹. The launch of spot-Bitcoin ETFs led to a surge in trading volumes during U.S. market hours, accounting for 46% of the cumulative volume from January to April, according to Kaiko Research ¹. This trend continued, with the ETFs experiencing the highest net flow in 10 weeks.

Bitcoin's price hovers around the psychological level of $70,000. From January to April 2024, BTC delivered a 57% return year-to-date, outperforming the S&P 500 ¹. This data highlights the growing impact of Bitcoin ETFs on the cryptocurrency market, showcasing their role in driving trading volumes and investor interest.

In conclusion, the milestone of over 1 million Bitcoins held in custody by Bitcoin ETFs marks a significant increase in institutional investment in Bitcoin and highlights the growing impact of Bitcoin ETFs on the cryptocurrency market. As the market continues to evolve, it will be interesting to see how Bitcoin ETFs continue to shape the investment landscape.