Recent data from HODL15Capital has identified BlackRock and Grayscale as the world’s predominant holders of Bitcoin, underscoring their influential positions in the cryptocurrency market.
BlackRock has amassed an impressive 305,614 BTC, while Grayscale is not far behind, holding 277,067 BTC. This report arrives amidst growing institutional interest in Bitcoin and the burgeoning Ethereum exchange-traded funds (ETFs) market.
Ethereum ETFs and institutional holdings
Other significant players follow BlackRock and Grayscale in Bitcoin holdings, such as MicroStrategy, which owns 226,331 BTC; Fidelity, with 167,375 BTC; and Tether, with 75,354 BTC. ARK 21Shares Bitcoin ETF also makes the list with 46,335 BTC. The Ethereum ETF market is gaining momentum as Bitcoin draws institutional investors.
Several prominent firms, including Franklin Templeton, VanEck, Invesco Galaxy, BlackRock, and Fidelity, revised their SEC registration statements for Ethereum ETFs. This flurry of activity suggests that these funds could start trading in early July.
Grayscale has also updated its filings, adjusting the registration for its Ethereum Trust and introducing changes to its mini Ethereum Trust. Conversely, Bitwise has opted not to amend its registration, setting a different strategic path in the ETF space.
Speculation and fee structures
The anticipation over these updates has led Bloomberg ETF analyst Eric Balchunas to pinpoint July 2 as a likely start date for Ethereum ETF trading. Balchunas commented that while Ethereum ETFs are poised for a positive reception, they may not capture more than 20% of the assets under management that Bitcoin ETFs have achieved.
The recent amendments have also revealed competitive fee structures that could influence the broader market. Franklin Templeton has announced a sponsor fee of 0.19%, which will be waived on the first $10 billion in assets for six months. Similarly, VanEck disclosed a sponsor fee of 0.20%, with a waiver extending to the first $1.5 billion in assets until 2025.
Such competitive pricing is poised to challenge other market participants to offer equally attractive terms. Industry giants like BlackRock and Fidelity have yet to announce their fee strategies.
Impact of fee competition
The launch of spot Bitcoin ETFs earlier this year initiated a competitive bout over fees among issuers, which varied between 0.19% and 0.39%. However, Grayscale’s Bitcoin Trust (GBTC) stands out with a significantly higher cost of 1.5%.
The fee strategies adopted by new entrants in the Ethereum ETF market will exert pressure on existing products and reshape fee standards across the industry.
As the cryptocurrency investment landscape continues to evolve, the strategies of top holding firms like BlackRock and Grayscale will significantly influence market dynamics and investor decisions. With the imminent rollout of Ethereum ETFs and ongoing developments in Bitcoin holdings, the interplay between fee competition and institutional adoption remains a critical focal point for the market.