Bitcoin Exchange-Traded Funds (ETFs) globally are now managing over 1 million BTC, which, at a value of nearly $68 billion, represents around 5% of the current circulating supply. This milestone was reached according to onchain data as of May 24th, 2024, when the total holdings by Bitcoin ETFs amounted to 1,002,343 BTC.

The accumulation includes 855,619 BTC from 11 spot ETFs that were launched in the United States in January 2024, alongside 21 Exchange-Traded Products (ETPs) from various countries including Canada, Germany, Sweden, Hong Kong, and Brazil.

BlackRock's iShares Bitcoin Trust (IBIT) has surpassed the Grayscale Bitcoin Trust ETF (GBTC) in the total number of bitcoins held. On May 28, 2024, it was reported by HODL15Capital that BlackRock's IBIT held 288,670 BTC, while Grayscale's GBTC had 287,450 BTC under management.

This swift change in leadership occurred just four months after BlackRock entered the market, highlighting the rapid growth of its Bitcoin ETF. The transition of the leading position can be attributed to the fee structure and investor sentiment, as Grayscale had 620,000 BTC at the time of the conversion on January 10, 2024, but faced a significant withdrawal of over 330,000 BTC.

HODL15Capital commented on the situation, stating, "Grayscale held 620,000 BTC at the time of the conversion, which was more than 3% of circulating supply, but refused to lower the fee (1.5% vs 0.2% for peers), even after investors pulled 330,000+ BTC. So much for the 'differentiated' strategy."

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