KEY POINTS
- BitMEX Research data shows BlackRock's IBIT holds nearly 198,000 Bitcoin
- MicroStrategy announced last month that it had 193,000 total Bitcoin holdings
- IBIT's milestone was revealed on the same day BTC's price soared above $70,000
Less than two months since the U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs), BlackRock's BTC ETFs have surpassed the total holdings of software and cloud-based services company MicroStrategy.
BlackRock's IBIT holds 197,943 Bitcoin, worth over $13.5 billion as of March 8, according to data compiled by the research unit of cryptocurrency products trading platform BitMEX. On the same day, Bitcoin passed the $70,000-mark for the first time since it was first released on Jan. 9, 2009.
[1/4] Bitcoin ETF Flow - 08 March 2024
— BitMEX Research (@BitMEXResearch) March 9, 2024
All data in. $223m positive net flow for thew day
The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC's assets for the first time pic.twitter.com/5BlBTu4WLn
[2/4] Same data in BTC terms pic.twitter.com/1sccUA2FTE
— BitMEX Research (@BitMEXResearch) March 9, 2024
MicroStrategy, which describes itself as the world's largest corporate holder of Bitcoin, has approximately 193,000 Bitcoin after it purchased around 3,000 more BTC in February.
The business intelligence firm also announced earlier this year that it was transitioning into a "Bitcoin development company." MicroStrategy founder and executive chairman Michael Saylor said it was a "natural" move, considering the success of its Bitcoin strategy.
Just last week, Saylor dropped a significantly bullish prediction, saying banks will ultimately be forced to offer Bitcoin as the world has entered the "gold rush era" of the world's first decentralized cryptocurrency. He said BTC has started a period of "high growth institutional adoption," due to more interest in Bitcoin trades, especially among some of the banking system's largest clients.
At this point, the "resistance" to Bitcoin will drop, Saylor predicted, adding that "there will be a day where Bitcoin blasts past gold [and] trade more than the S&P index ETFs."
News of IBIT's latest milestone came as institutional demand for cryptocurrencies has been driving more interest in the crypto sector. Prominent Bitcoin investor Lark Davis wrote on X (formerly Twitter) that over-the-counter (OTC) trading platforms have started to run out of Bitcoin. Institutional investors typically depend on OTC desks. To fulfil the surge in orders, OTC platforms are now turning to public exchanges, as per Davis.
OTC desks are running out of Bitcoin.
— Lark Davis (@TheCryptoLark) March 4, 2024
Suppliers must return to public exchanges to source new Bitcoin when demand is overwhelming.
The supply & demand pressure is building. pic.twitter.com/qoAiX8WW0A
BlackRock has also been building its Bitcoin portfolio in recent months. About a month after the SEC's historical decision on spot BTC ETFs, BlackRock chief investment officer Rick Rieder hinted that the world's largest asset manager may acquire more Bitcoin in the future.
He expressed belief that people will warm up to cryptocurrencies over time, marking a notable difference in the tone of BlackRock leaders regarding crypto and digital assets. BlackRock CEO Larry Fink previously associated cryptocurrencies with money laundering, but later predicted that such assets could "transcend" traditional currencies.
