Bitcoin investment vehicles hit 140K BTC milestone in 2021

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Data shows that Bitcoin investment vehicles, including ETFs, rose to a record 140,000 BTC in the year 2021.

Bitcoin investment vehicles experience strong growth in 2021

According to the latest weekly report from Arcane research, various investment vehicles now hold 140,000 BTC more than last year. ETFs now represent 10% of total funds held in the market.

An “exchange-traded fund” (or ETF for short) is a type of investment product that tracks the price of another asset or commodity. A Bitcoin ETF, for example, is one that tracks the value of the coin.

This means that by using an ETF, investors can bet on the price of BTC without actually having to own the cryptocurrency.

These exchange-traded funds were only available on the BTC market this year, but due to the maturity of the market, financial regulators have decided to approve them in some countries, including the United States.

If you are wondering why some investors prefer to invest in an ETF rather than buying Bitcoin directly, there may be several reasons for this.

The first benefit is that investors who are new to the crypto world no longer need to navigate cryptocurrency exchanges and the like. ETFs are familiar territory for many, so it becomes natural for some to go there.

Another advantage is that these ETFs based on futures contracts allow holders to speculate on the price movement in either direction. This means that investors can choose to be not only long but also short on the price of BTC.

Related reading | Why did Bitcoin take multiple hits in 2021 and still have a $ 22,000 increase? Is the real bull market coming?

Now, here is a chart that shows the growth in holdings of exchange traded funds relative to other investment vehicles in the year 2021:

The emergence of ETFs in the BTC market | Source: The Arcane Research Weekly Update - Week 51

As you can see in the graph above, the amount of crypto held by the funds has increased by over 140,000 BTC over the past year.

Related reading | Why the first quarter of 2022 will be a bullish period for Bitcoin and Ethereum, according to Raoul Pal

After a steady upward trajectory, ETFs now represent 10% of the fund’s total holdings in the BTC market.

The report predicts that by the end of next year (2022), Bitcoin investment holdings will store over one million coins.

BTC price

As of this writing, the price of Bitcoin is floating around $ 47.1,000, down 2% from last week. The chart below shows the coin’s price trend over the past five days.

Bitcoin Price Table

After recovering above $51k only a few days ago, BTC's price has again shown sharp downtrend since | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research


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