Blackrock IBIT Achieves Over 200,000 BTC, Intensifying Bitcoin ETF Market
BlackRock’s iShares Bitcoin Trust (IBIT) has experienced a remarkable surge, now holding over 200,000 Bitcoins valued at approximately $14.76 billion as of March 11, 2024.
This significant increase, representing a staggering 116% growth, comes in conjunction with a sudden influx of institutional investments into the spot Bitcoin ETFs market. It is not only a victory for Bitcoin, but also a momentous occasion for the entire digital assets market.
The data released also reveals that the iShares Bitcoin Trust’s Net Asset Value (NAV) stood at $41.27 on March 11, 2024, with a 4.55% increase in NAV on the same day.
BlackRock has provided additional insights into IBIT’s fees, disclosing a 0.25% Sponsor Fee. However, the company has made a bold move by announcing a fee waiver for the first 12 months, effectively reducing the Sponsor Fee to 0.12% for the first $5.0 billion of the Trust’s assets. After this period, or if the fund surpasses $5.0 billion within the year, the Sponsor’s Fee will revert to 0.25%.
Did You Know?
MicroStrategy Dethroned: BlackRock ETF Becomes Top Bitcoin Holder
Institutional Investors Flood the Markets
There is currently a surge in institutional investment in Bitcoin ETFs. Recent data shows a massive $505.6 million inflow into the US Spot Bitcoin ETFs market, indicating strong institutional interest, according to provisional data from Farside UK.
BlackRock’s IBIT and Fidelity’s Bitcoin Trust (FBTC) have collectively received an astounding $775 million in inflows. It is worth noting that on February 20th, BlackRock’s IBIT reached a historic peak with a $562.9 million inflow, while FBTC saw a $215.5 million inflow.
In contrast, Grayscale’s Bitcoin Trust (GBTC) has experienced significant outflows.
Market Dynamics and Future Outlook
This surge in Bitcoin holdings and ETF inflows coincides with Bitcoin’s climb to a new all-time high, surpassing $72,000. Analysts attribute this upward trend to positive developments in the Bitcoin ETF space and the anticipation surrounding the Bitcoin halving.
Currently, Bitcoin is priced at $72,155.372, with a 24-hour trading volume of $55.95 billion.
The influx of institutional investments into Bitcoin ETFs carries significant implications. BlackRock’s substantial Bitcoin position and the record-breaking inflows into the US Spot Bitcoin ETFs highlight the market’s maturity and resilience, even in turbulent times.
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