BlackRock ETF Surpasses MicroStrategy as Leading Bitcoin Holder
In the world of cryptocurrency, the fiercest competition is happening for Bitcoin. BlackRock’s Bitcoin ETF, IBIT, has achieved a significant milestone by reaching $10 billion in assets, surpassing all other ETFs in the US. This achievement has been fueled by a rally in Bitcoin prices, attracting attention from both institutional and everyday investors.
What is even more surprising is that IBIT, which was launched in January, now holds over 195,000 BTC, surpassing even MicroStrategy’s holdings. This success signifies a monumental shift in the financial industry, proving that digital assets are more than just a passing trend. The combined value of new Bitcoin ETFs, excluding Grayscale’s, now stands at $28 billion, driven by institutional demand that has pushed Bitcoin’s price past $70,000.
Competition in the crypto arena is heating up, and the next destination seems to be the moon. Bitcoin has reached a new all-time high of $70,000, along with the highest weekly candle ever. However, there is growing buzz about Bitcoin’s limited supply. Recent reports suggest that over-the-counter (OTC) platforms are running out of Bitcoin, forcing them to source from public exchanges. OTC desks, which primarily cater to large-volume traders like institutional investors, are feeling the pressure as demand skyrockets.
Meanwhile, although not an ETF issuer, MicroStrategy holds 193,000 BTC in its corporate treasury, which is partially financed by debt. The company has recently announced plans for a $600 million debt offering to further increase its Bitcoin reserves. This Bitcoin-focused strategy has propelled MicroStrategy’s stock (MSTR) to a staggering 642% surge in the past year, surpassing Bitcoin’s gains of 244% over the same period.
Despite criticism from experts regarding the accumulation of a large amount of Bitcoin, CEO Michael Saylor has reiterated his belief in holding the company’s Bitcoin reserves. He considers Bitcoin as the “exit strategy” and believes it is “technically superior” to assets like gold, the S&P 500, and real estate, even though these assets have larger market capitalizations. Saylor asserts that there is no reason to sell a winning asset like Bitcoin to buy losing assets.
Scott Melker, also known as the “Wolf of All Streets,” predicts a significant surge in Bitcoin’s value but warns of a possible bubble. He suggests that even worthless cryptocurrencies may experience a rise before a market correction. Despite the risks, Melker foresees a major surge in Bitcoin’s price due to the growing demand for spot ETFs and the upcoming halving event. With demand outpacing supply, Bitcoin’s price is likely to surpass $75,000 in March and continue to rise due to optimism and speculation.
The battle for supremacy in the cryptocurrency world sets the stage for an exciting summer, as the question remains: who will lead the charge into crypto’s new era?