Benzinga - The BlackRock iShares Bitcoin ETF (IBIT) has amassed a larger quantity of Bitcoin (CRYPTO: BTC) than MicroStrategy (MSTR) in less than two months since its inception.
What Happened: According to a recent disclosure by the fund, IBIT held 195,985 BTC on Friday, following a series of significant inflows. This figure surpasses the 193,000 BTC held by MicroStrategy as of Feb. 26, as per the company’s most recent public statements, reported CoinDesk.
It is possible that MicroStrategy has increased this total, as the company recently concluded a $700 million capital raise with plans to use the funds for additional BTC purchases.
Since the launch of the spot ETFs on Jan. 11, IBIT has consistently added hundreds of millions of dollars worth of BTC daily, establishing itself as the largest of the new spot products, except for the Grayscale Bitcoin Trust, which was converted from a closed-end fund.
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Following IBIT is Grayscale’s GBTC, which has shed over 200,000 BTC since the spot products opened for business but still holds around 400,000 tokens.
The substantial demand for the new spot ETFs is a primary driver of Bitcoin’s over 60% price surge this year. The cryptocurrency reached over $70,000 for the first time on Friday, ultimately hitting a new all-time high of $70,136, according to data from CoinDesk Indices.
Why It Matters: The BlackRock iShares Bitcoin ETF’s rapid accumulation of BTC underscores the growing interest in crypto-based investment products. This trend was evident earlier in 2024 when the SEC approved 10 spot Bitcoin ETFs for trading, sponsored by major asset management firms like BlackRock and Fidelity Investments. These ETFs were designed to bridge the gap between crypto enthusiasts and stock market investors, allowing new investors to access Bitcoin through an equity product that can be bought on the stock market.
BlackRock’s strong performance in the ETF space was also evident earlier in the year, when the company reduced fees on its proposed Bitcoin ETFs, entering a competitive fee war with Ark Investment Management before obtaining approval from the U.S. Securities and Exchange Commission. This move, along with the ETF’s subsequent success, demonstrates BlackRock’s strategic positioning in the crypto market.
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