BlackRock’s iShares Bitcoin Trust (IBIT) has recently crossed a major new milestone, with its Bitcoin (BTC) holdings totaling over 500,000 BTC. On December 2, we have 500,380 BTC (about $48 billion at current prices) in the Bitcoin ETF. Due to this, BlackRock’s IBIT is one of the biggest players in the Bitcoin space, with 2.38 percent of Bitcoin’s total capped supply amounting to 21 million coins.
It introduces the ETF to give investors easier exposure to Bitcoin and simplify owning Bitcoin directly. The firm said IBIT reduces “the operational, tax, and custody complexity that accompanied direct Bitcoin ownership,” allowing investors to enjoy the asset without all that extra baggage.
After its launch, IBIT became the most actively traded spot in the Bitcoin ETF, garnering the attention of institutional and retail investors alike. Investors are interested in Bitcoin ETFs, and evidence shows that more are interested in getting exposure through exchange-traded products (ETPs).
As you’d expect, the combined holdings of all spot Bitcoin ETFs are also nearing a big milestone. Data from ETF tracker SoSoValue indicates that these ETFs, other than the Grayscale Bitcoin Trust (GBTC), have amassed a substantial amount of Bitcoin. And now, the total Bitcoin owned by ETFs is on the precipice of matching the 1.1 million BTC held by Bitcoin’s pseudonymous ultraviolent creator, Satoshi Nakamoto. It shows that Bitcoin is becoming an asset class that institutional interest will grow.
MicroStrategy’s Holdings Overcome by BlackRock’s ETF
Bitcoin is as valuable in BlackRock’s IBIT ETF as in MicroStrategy, the largest corporate Bitcoin holder. MicroStrategy currently has 402,100 BTC in what is known as Bitcoin Treasury data. In a filing made December 2, MicroStrategy sold 3.7 million shares of Class A common stock, raising nearly $1.5 billion and using the funds to buy another 15,400 Bitcoin. This follows a previous $5.4 billion Bitcoin purchase by MicroStrategy.
While BlackRock’s IBIT ETF outperformed MicroStrategy’s holding in Bitcoin, MicroStrategy remains the largest corporate Bitcoin holder. Yet, the rush of Bitcoin to institutional hands, BlackRock among them, signals growing demand and rampant potential for future price increases.
Not only have BlackRock and MicroStrategy been going hard with their Bitcoin buys, but cryptocurrency miner MARA Holdings has also been buying up the altcoin. On December 2, MARA filed that between October 1 and November 30, it bought 6,484 BTC worth $618.3 million, paying an average cost of $95,352 per coin. MARA now holds the second largest amount of Bitcoin in corporate hands, with 34,794 BTC.
With increasing institutional interest in Bitcoin through ETFs and direct purchases, we’re starting to see more corporate involvement in the market. As Bitcoin ETFs gain traction and companies such as MicroStrategy and MARA put into purchasing more, the growing institutional footprint sets the stage to influence the market and propel Bitcoin as an investment asset.
