As anticipation mounts over the potential approval of ether-based exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC), the spotlight is currently on the soaring popularity of Bitcoin tracking instruments. Among the frontrunners in this space are BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), and Grayscale’s Bitcoin Trust (GBTC), all of which have demonstrated remarkable market performance. This trend has captured widespread attention in financial circles and is being closely analyzed by experts on Wall Street as a significant financial development.

Despite being relatively new to the market, US spot Bitcoin ETFs have made a substantial impact in just over five months. In a recent display of robust performance, these ETFs witnessed a remarkable influx of $305.7 million in positive flows last Tuesday, marking seven consecutive days of gains.

Standing out prominently among these ETFs is BlackRock’s IBIT, which accounted for an impressive 94.86% of total flows, equivalent to over $280 million. Fidelity’s FBTC also attracted significant investment, garnering nearly $26 million, while other Bitcoin ETFs remained relatively static with no notable inflows or outflows.

A keenly observed competition is currently underway to determine which entity holds the largest share of bitcoins in circulation. Presently, BlackRock’s IBIT trails Grayscale’s Bitcoin Trust, holding 281,883.90 BTC compared to Grayscale’s 289,511.90 BTC. However, the gap for IBIT stands at a mere 7,628 BTC, valued at approximately $536 million, positioning it as a potential frontrunner in the near future.

Among the select few ETFs holding over 100,000 BTC, Fidelity’s FBTC trails closely behind with 159,548.77 BTC, valued at around $11.21 billion.

BlackRock’s IBIT has garnered considerable attention, attracting nearly 414 institutional investors and establishing itself as a primary reference point for large-scale investors, consequently driving up demand for Bitcoin. Bloomberg Senior Analyst Eric Balchunas expressed astonishment at the rapid surge in investor interest, noting the significant jump from 20 investors at launch to 414 within just three months, a phenomenon he deemed highly unusual. In contrast, competitors such as the Bitwise Bitcoin ETF and the ARK 21Shares Bitcoin ETF have not witnessed comparable levels of investor enthusiasm.

Among the top investors in IBIT are Millennium Management LLC, holding 20,859,447 shares valued at $844 million, followed by Schonfeld Strategic Advisors LLC with shares worth $248 million. Notably, the Wisconsin Investment Board has also entered the fray, acquiring shares worth 2,450,400.

Meanwhile, Grayscale Bitcoin Trust, boasting 619 institutional investors, has recently transitioned its status to that of a spot Bitcoin ETF, signaling renewed activity in the market.

As of May 16, 2021, IBIT managed a portfolio of over 276,190 Bitcoins, valued at more than $18 billion. This week alone, investments in US Bitcoin ETFs amounted to a staggering $948.3 million. BlackRock CEO Larry Fink, a vocal proponent of Bitcoin, emphasized the exponential growth of IBIT, suggesting a significant surge in Bitcoin’s popularity and recognition within the global financial industry.