BlackRock Spot Bitcoin ETF MicroStrategy’s Bitcoin holdings have surpassed it, marking a significant milestone for institutional cryptocurrency investing.
Institutional Demand Drives Bitcoin ETF Growth
The rise in BlackRock’s IBIT reflects growing institutional demand for Bitcoin as a hedge against inflation and as a store of value amid economic uncertainty. BlackRock’s IBIT currently holds 197,943 bitcoins, worth more than $13.5 billion as of March 8, exceeding MicroStrategy’s holdings, according to data from BitMEX Research.
(1/4) Bitcoin ETF Flow – March 8, 2024
Enter all data. Positive net flow of $223 million for the day.
Excluding GBTC, the ETF’s assets now exceed $28 billion, making it larger than GBTC’s assets for the first time. pic.twitter.com/5BlBTu4WLn
— BitMEX Research (@BitMEXResearch) March 9, 2024
The launch of several new Bitcoin ETFs, including BlackRock’s, has significantly increased institutional participation in the cryptocurrency market. These ETFs hold a total of $28 billion worth of assets, excluding Grayscale’s GBTC.
MicroStrategy’s Bitcoin Strategy and Market Position
Although MicroStrategy is not an ETF issuer, the tech company has amassed a sizable Bitcoin portfolio of 193,000 BTC as part of its corporate finance strategy. MicroStrategy’s Bitcoin-centric approach has delivered significant gains over the past 12 months, with the stock (MSTR) soaring 642%, outpacing Bitcoin’s gains over the same period.
The company’s CEO, Michael Saylor, reiterated his commitment to Bitcoin, emphasizing its technological superiority over traditional assets such as gold, the S&P 500, and real estate.
Also Read: MicroStrategy’s Bitcoin Investment Hits the Jackpot: $4 Billion Profits Cross $10 Billion
Plan to strengthen Bitcoin holdings
MicroStrategy recently announced plans to raise more than $600 million in a debt offering that would further bolster its Bitcoin reserves. Saylor confirmed that selling Bitcoin is not part of the company’s strategy, seeing Bitcoin as its ultimate exit strategy.
Saylor’s bullish stance on Bitcoin highlights institutional investors’ growing confidence in the cryptocurrency’s long-term potential despite market volatility and regulatory uncertainty.