Bitcoin exchange-traded products (ETPs) have reached a significant milestone, holding over 1 million Bitcoin (BTC) globally. These investment vehicles, which track the price or provide exposure to BTC, have been rapidly accumulating the digital currency since the launch of spot Bitcoin ETFs in the United States in mid-January.

The 11 ETFs in the United States have absorbed 855,619 BTC, averaging 6,200 BTC per day. Additionally, 21 other ETPs offered in various countries, including Canada, Germany, and Brazil, have contributed to the total of 1,002,343 BTC, valued at approximately $68 billion. This represents 5.08% of the current circulating supply of coins, which stands at 19,704,484 BTC, according to CoinGecko.

Grayscale's GBTC remains the largest fund holding BTC, with 289,040 coins worth around $19.9 billion. However, BlackRock's iShares Bitcoin Trust (IBIT) is rapidly closing the gap, with 287,168 BTC worth around $19.8 billion. If inflows continue and GBTC continues to outflow, IBIT may surpass GBTC this week.

Grayscale has lost around 330,960 BTC, or 53% of its previous holdings, since GBTC was converted into a spot ETF in mid-January. This significant decline has raised questions about the impact of ETFs on the growth of Bitcoin held in self-custody.

A chart from HODL15Capital shows that there has been no growth in self-custody from 2023 to 2024. However, this is not a new phenomenon, as there was also no growth between 2017 and 2018. Furthermore, only 1 million addresses hold 1 BTC or more, according to LookIntoBitcoin. This suggests that the majority of Bitcoin is still held in a relatively small number of addresses.