After the approval of the Bitcoin ETF, how much capital flowed into the cryptocurrency market?
After the approval of the Bitcoin ETF, the cryptocurrency market saw an influx of funds. The ETF added a net increase of 110,000 bitcoins, bringing the total holdings to 37.21 billion US dollars. Since the ETF approval, as of February 25, 2024, the 11 Bitcoin ETFs held a total of 732,549 bitcoins, with a cumulative increase of 113,058 bitcoins. The total holdings for the Bitcoin ETF amounted to 732,000 bitcoins, with the managed fund size increasing from 28.59 billion US dollars to 37.21 billion US dollars, totaling an additional 8.6 billion US dollars in fund size.
Grayscale reduced its holdings by 175,000 bitcoins, while BlackRock acquired 127,000 bitcoins. Although the overall holdings of the Bitcoin ETF increased, the price of Bitcoin experienced a significant drop from $49,000 to $38,500 in the days following the approval of the Bitcoin ETF. This drop was primarily due to the reduction in holdings by Grayscale.
