As more investors seek exposure to the asset, BlackRock’s spot Bitcoin exchange-traded fund (ETF) has surpassed 500,000 BTC in holdings. This milestone is a significant development in the cryptocurrency market, indicating growing interest and demand for Bitcoin among institutional investors.
iShares Bitcoin Trust ETF: A Convenient Way to Invest in Bitcoin
The iShares Bitcoin Trust (IBIT) ETF allows investors to access Bitcoin with an exchange-traded product (ETP), removing the "operational, tax, and custody complexities of holding Bitcoin directly." This convenience has been a major draw for investors, who can now gain exposure to the cryptocurrency without having to worry about the underlying complexities.
Holding 2.38% of Total Capped Supply
BlackRock’s IBIT ETF has become the most actively traded spot Bitcoin ETF since its launch, holding 2.38% of Bitcoin’s total capped supply of 21 million. This represents a significant proportion of the total circulating supply and demonstrates the growing institutional interest in the cryptocurrency.
Cumulative Inflows Across Spot Bitcoin ETFs
Data from ETF tracker SoSoValue shows that apart from the Grayscale Bitcoin Trust (GBTC), all other spot Bitcoin ETFs had positive cumulative inflows as of Dec. 2. This indicates a consistent and sustained flow of investment into these funds, further underscoring the growing demand for Bitcoin.
Collectively Approaching Satoshi’s Holdings
The collective holdings of spot Bitcoin ETFs are nearing the 1.1 million BTC attributed to the cryptocurrency’s pseudonymous creator, Satoshi Nakamoto. This milestone is significant, as it highlights the growing institutional interest in Bitcoin and its increasing acceptance as a legitimate asset class.
BlackRock ETF’s Bitcoin Holdings Exceed MicroStrategy’s
The IBIT ETF’s Bitcoin holdings now exceed those of MicroStrategy, the largest corporate Bitcoin holder. According to data from Bitcoin Treasuries, MicroStrategy remains the largest corporate Bitcoin holder with 402,100 BTC. However, BlackRock’s ETF has surpassed this number, demonstrating its growing popularity and influence in the market.
MARA Holdings Adds More BTC to Its Holdings
Apart from MicroStrategy, crypto miner MARA Holdings has also recently added more BTC to its holdings. In a filing on Dec. 2, the company revealed that it purchased 6,484 Bitcoin between Oct. 1 and Nov. 30 for $618.3 million at an average price of $95,352 per coin.
Growing Institutional Interest in Bitcoin
The growing institutional interest in Bitcoin is a significant development for the cryptocurrency market. As more investors seek exposure to the asset, its price and adoption are likely to increase, further cementing its position as a legitimate asset class.
Why Investors Are Flocking to BlackRock’s ETF
So, why are investors flocking to BlackRock’s iShares Bitcoin Trust ETF? There are several reasons for this growing interest:
- Convenience: The ETF provides a convenient way to invest in Bitcoin without the underlying complexities.
- Liquidity: The fund offers liquidity and ease of trading, making it an attractive option for investors.
- Regulatory Framework: The ETF is subject to regulatory oversight, providing a level of comfort and security for investors.
Conclusion
In conclusion, BlackRock’s iShares Bitcoin Trust ETF has surpassed 500,000 BTC in holdings, demonstrating the growing institutional interest in the cryptocurrency. As more investors seek exposure to Bitcoin, its price and adoption are likely to increase, further cementing its position as a legitimate asset class.
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