BlackRock BTC ETF Now Holds More BTC than MicroStrategy
The BlackRock spot Bitcoin exchange-traded fund (ETF) has emerged as a formidable player, outpacing the holdings of technology firm MicroStrategy.
Data compiled by BitMEX Research reveals that BlackRock’s Inverse Bitcoin ETF (IBIT) currently holds an impressive 197,943 Bitcoin, valued at over $13.5 billion as of March 8. This milestone comes just 40 trading sessions after the Securities and Exchange Commission (SEC) approved nine new funds on January 10.
Surge in Demand Drives Bitcoin Price
The surge in institutional demand is underscored by the collective assets of newly launched Bitcoin ETFs, excluding Grayscale’s GBTC, reaching a staggering $28 billion. This surge in demand has played a pivotal role in propelling the price of Bitcoin beyond the $70,000 mark on March 8.
Reports from various sources, including X (formerly Twitter), indicate that over-the-counter (OTC) trading platforms are experiencing a shortage of Bitcoin, leading them to turn to public exchanges to fulfill orders. Typically serving large-volume traders, such as institutional investors, OTC desks have become a crucial component of the cryptocurrency market.
BlackRock and MicroStrategy Double Down on BTC
In contrast to the success of the BlackRock BTC ETF, technology firm MicroStrategy has taken a different approach to Bitcoin investment. MicroStrategy has strategically amassed a portfolio of 193,000 BTC as part of its corporate treasury strategy. Employing a leveraged operating strategy, the company utilizes debt to finance its operations and investments.
MicroStrategy’s Bitcoin-centric approach has proven effective, with its stock (MSTR) soaring an impressive 642% in the last 12 months, significantly outpacing Bitcoin’s own gains of 244% during the same period.
Michael Saylor Weighs in
MicroStrategy’s CEO, Michael Saylor, remains committed to this strategy, recently announcing plans for a debt offering aimed at raising over $600 million to further strengthen the company’s Bitcoin reserves.
Saylor expressed his unwavering commitment to Bitcoin, declaring, “I’m going to be buying the top forever. Bitcoin is the exit strategy.”
He emphasized the cryptocurrency’s technical superiority over traditional assets such as gold, the S&P 500, and real estate, despite their larger market capitalizations.
BlackRock Expands BTC Exposure
BlackRock recently stated that it plans to integrate its spot BTC ETF into its global allocation funds, notably the Multi-Asset Income Fund (MALOX). The firm also plans to diversify its exposure to Bitcoin ETFs by considering offerings from various issuers.
The asset management firm is also planning to debut a spot Ether ETF in the near future but recently, the SEC rejected its application for the same.
