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14 ETFs hold BTC worth $28.5 billion

by LLT Editor
26th Jan 22 12:53 pm

Exchange-traded Funds (ETFs) are catching on in the crypto sector. Today the market is bursting with crypto-centric ETFs capitalizing on Bitcoin’s (BTC) appeal. A new study shows that 14 ETF firms hold BTC valued at over $28 billion.

As per data provided by tradingplatforms.com, the fourteen hold 809, 848 BTC. This figure works out to roughly $28.5 billion. Again, their stash makes up 3.9 percent of the total BTC supply.

Tradingplatforms.com’s Edith Reads has been analyzing the data. She says, ” Bitcoin’s volatility is a turn off for potential investors. Here’s where ETFS come into play. Investment firms are offering them as a safe means for BTC onboarding. They allow investors the exposure to the asset with measured risk.”

Dissecting the data
 A look into the data reveals interesting facts. First, the Grayscale Bitcoin Trust has the lion’s share of the reserves. It has invested over 640 thousand BTC (about $22.8 billion). Thus, it owns over 80% percent of the combined BTC holding by the 14 ETFs.

Secondly, Canadian firms dominated the listing. Out of the fourteen products the study covered, they contributed six. The U.S based ETFs were second with four products, while German and Swiss firms had two products apiece.

Coming in at the second spot was CoinShares/XBT Provider ETF. The Swiss company owns about 48,000 BTC worth around $1.7 billion. And in third place was Purpose Bitcoin ETF with nearly 22,000 BTC ($790 million)

3iQ CoinShares BTC ETF placed fourth with roughly 21,000 BTC valued at $748.6 million. And rounding up the top five was the ETC Group BItcoin ETP. The entity owns close to 18,000 BTC worth over $633 million.

Why the Canadian dominance?
The Canadian dominance is due to the nation’s relaxed stance on BTC ETFs. For instance, it has licensed both BTC spot trading and futures ETFs. Many Bitcoin enthusiasts tend to favor the former over the latter product.

In contrast, the U.S has been reluctant to license BTC spot-based ETFs. Its Securities and Exchange Commission (SEC) prefers the less popular BTC futures-based ones. That stance has put off would-be investors in the space.

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