BlackRock’s IBIT Overshadows MicroStrategy with 12,000 BTC Purchase

Last week, BlackRock’s iShares Bitcoin ETF (IBIT), a SEC-approved spot Bitcoin exchange-traded fund, briefly outpaced software firm MicroStrategy in BTC holdings. According to a disclosure on Friday, IBIT currently holds 195,985 BTC, while MicroStrategy, having recently acquired an additional 12,000 BTC, now holds 205,000. Notably, MicroStrategy’s chairman, Michael Saylor, has consistently advocated for Bitcoin.

[1/4] Bitcoin ETF Flow – 11 March 2024

All data in. A strong day with $505.5m net inflow. Blackrock again leading with $562.9m of inflow pic.twitter.com/RDP8HNUvU1

— BitMEX Research (@BitMEXResearch) March 12, 2024

In the context of Bitcoin’s remarkable 70% surge this year, reaching around $72,000, the approved spot Bitcoin ETFs, including IBIT, have garnered significant attention, accumulating over $10 billion in net inflows. This surge in demand precedes the upcoming halving event. To address investor demand and maintain liquidity, IBIT has been acquiring billions of dollars worth of Bitcoin as its assets under management have expanded.

It’s worth noting, however, that IBIT’s holdings, although substantial, pale in comparison to the Grayscale Bitcoin Trust (GBTC), which manages an impressive 400,165 BTC. GBTC, originally the largest Bitcoin fund before transitioning into a spot Bitcoin ETF, has experienced significant outflows totaling $10 billion post-conversion.

First two months officially in the books (it's felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I'd call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ

— Eric Balchunas (@EricBalchunas) March 11, 2024

Despite the challenges faced by GBTC, the ten new spot products launched in January have collectively amassed $55 billion in assets under management (AUM). Leading the inflows are both IBIT and Fidelity’s Bitcoin ETF. On the microblogging platform X, formerly Twitter, Bloomberg ETF analyst Eric Balchunas expressed surprise at IBIT and Fidelity’s Bitcoin ETF (FBTC) ranking third and fourth in year-to-date flows among all ETFs.

Related: Bitcoin Surges to $72,000 as ETF Funds Continue Breaking Records

In the broader context of the cryptocurrency market, investment products witnessed record weekly inflows of $2.7 billion, with Bitcoin and Solana products attracting more capital compared to others. Interestingly, Ethereum products experienced outflows amounting to $2.1 million.