The net asset value of Bitcoin Spot ETF has reached an approximate value of $46.9 Billion in just seven weeks after it launched, making it one of the most successful ETF to ever be traded on the financial market.
Bitcoin is currently moving towards the next predicted bull market, which probably triggered a lot of investors, especially institutional investors to get in on Bitcoin.
Constraints around regulations has made them unable to purchase Bitcoin directly, which is why currently they are looking into Bitcoin Spot ETF as an alternative, hence why the value suddenly increased.
Bitcoin Spot ETF Net Asset Value Reaches $46.9 Billion
According to data from Dune Analytics that was created by the user @hildobby that sourced the data from Arkham Intelligence, the current Bitcoin’s net asset value has reached $46.9 Billion.
The net asset value or NAV was sourced from the overall on-chain holdings of issuers of the Bitcoin Spot ETF.
Accumulatively, all the issuers currently hold around 769,000 BTC as a result of the Bitcoin Spot ETF interest among investors.
Issuers are obligated to buy Bitcoin in the same value as the purchased amount from the sales of Bitcoin Spot ETF. This is to keep the pegged value of both assets stable.
So, currently seeing that the holdings of on-chain BTC by issuers has reached $46.9 Billion it means that the overall market capitalization of Bitcoin Spot ETF has reached the same number.
GBTC Still Dominating
The overall BTC that is circulating among the issuers as a result of the buying pressure from the ETF has reached 3.92% of the overall Bitcoin’s circulating supply.
Data also projected that the overall Bitcoin Spot ETF will absorb BTC circulating supply as high as 7.63%.
This means because of the existence of this ETF, issuers will hold 7.63% and are currently holding 3.92% of the overall circulating supply as a result of investors buying their ETFs.
The issuer that is still dominating is Grayscale, with its GBTC Bitcoin Spot ETF. Grayscale’s dominance is a result of them having GBTC before the ETF was even approved, selling it as a legal form of Bitcoin ETP.
The ETP was transformed into an ETF which caused the overall volume of those ETP being transferred to the ETF that is now called GBTC.
This gave them a head start ahead of everyone else, which is why their overall holdings are much more than others.
Even though the overall holdings of Grayscale are a lot more than others, the daily transaction itself is not higher than most.
The highest daily transaction volume is still being held by BlackRock with its IBIT Bitcoin Spot ETF.
IBIT has reached an overall $1 Billion to $3 Billion of daily transaction volume on average, making it the most traded ETF currently, followed by Fidelity’s FBTC.
Overall, the growing interest towards Bitcoin Spot ETF can be one of the reasons that Bitcoin’s price will go up higher, especially with the Bitcoin Halving narrative.
Looking at the history of BlackRock, it is not impossible that IBIT will take over the dominance of the Bitcoin ETF, making BlackRock one of the largest holders of Bitcoin in the crypto space.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.