BlackRock’s Bitcoin ETF Reaches Milestone: Holds 700,000 Bitcoins
BlackRock, the world’s largest asset manager, has achieved a significant milestone. Its Bitcoin ETF (IBIT) now holds 700,000 bitcoins, valued at $76.3 billion. This achievement places IBIT among the top 25 ETFs in the market.
The fund’s growth is fueled by both inflows and the increasing value of Bitcoin. Since the launch of Bitcoin ETFs in January 2024, the cryptocurrency has surged by 137%.
Other Firms Also See Success
While BlackRock leads the pack, other asset managers are also experiencing success with their Bitcoin ETFs.
Bitcoin ETF Market Overview
On Monday, Bitcoin ETFs in the United States saw a total inflow of $216.5 million. BlackRock’s IBIT accounted for a substantial portion of this, attracting $164.6 million.
Fidelity, another major player, has surpassed 200,000 bitcoins in its ETF.
Ark Invest holds 48,200 bitcoins, Bitwise possesses 44,300 BTC, and VanEck manages 15,700 coins.
Grayscale’s Shift
Grayscale, which converted its existing fund into an ETF, initially held 619,000 bitcoins. However, its holdings have decreased to 228,500 bitcoins across its GBTC and BTC ETFs. This shift is partly attributed to the 1.5% fees charged on GBTC.
Collectively, U.S. Bitcoin ETFs hold over 1.25 million bitcoins. This amount exceeds the estimated holdings of Satoshi Nakamoto, the creator of Bitcoin.
BlackRock’s IBIT: A Major ETF Player
According to data from VettaFi, BlackRock’s Bitcoin ETF is now the 23rd largest ETF overall and the 8th largest within BlackRock’s own offerings.
For context, BlackRock’s gold ETF, launched in 2005, is valued at $47.4 billion.
To reach the scale of ETFs linked to the S&P 500, IBIT would need to increase ninefold, reaching 6.3 million bitcoins under management. Alternatively, if IBIT maintains its current 700,000 bitcoins, a 900% increase in Bitcoin’s value would be required.
Given the relative newness of these products and Bitcoin’s history of price appreciation, such growth is possible in the coming years.
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