Record-Breaking Inflows Drive Surge in Holdings for BlackRock’s Bitcoin ETF
As of March 11, 2024, the BlackRock iShares Bitcoin Trust (IBIT) has experienced a significant increase in its Bitcoin holdings, surpassing 200,000 with a total value of approximately $14.76 billion. This remarkable growth of 116% is a result of a sudden influx of institutional investments through the spot Bitcoin ETFs market, marking a significant milestone for both Bitcoin and the broader digital assets market.
BlackRock’s Bitcoin holdings in the IBIT now stand at 203,754.8 Bitcoins, with a market value of $14.76 billion. Additionally, the released data reveals that the iShares Bitcoin Trust has a Net Asset Value (NAV) of $41.27 as of March 11, 2024, representing a 4.55% appreciation at NAV on that day.
BlackRock has also provided information regarding the fees associated with the IBIT, stating a Sponsor Fee of 0.25%. However, the company has announced a fee waiver for the first 12 months, reducing the Sponsor Fee to 0.12% for the first $5.0 billion of the Trust’s assets. After this initial period, or if the fund exceeds $5.0 billion within the 12 months, the Sponsor’s Fee will revert to 0.25%.
According to the official update on its website, the BlackRock iShares Bitcoin Trust (IBIT) has seen a surge in its Bitcoin holdings, surpassing 200,000 Bitcoins with a market value of approximately $14.76 billion as of March 11, 2024.
This substantial increase coincides with a significant influx of institutional investments into the U.S. spot Bitcoin ETFs market, marking another important milestone for Bitcoin and the digital asset space.
In recent news, the U.S. spot Bitcoin ETFs have witnessed a massive influx of institutional investments, totaling $505.6 million, according to provisional data from Farside UK. The spotlight is on institutional giants BlackRock’s IBIT and Fidelity’s Bitcoin Trust (FBTC), as they collectively received an astounding $775 million in inflows. On February 20, BlackRock’s IBIT set a new record with a $562.9 million inflow, while the FBTC generated a $215.5 million inflow.
However, despite the growing number of investors trading digital assets and the substantial income generated through BTC ETFs, Grayscale’s Bitcoin Trust (GBTC) has experienced significant outflows.
The increase in Bitcoin and ETF inflows coincides with Bitcoin reaching a new all-time high of over $72,000. Experts attribute this upward trend to positive developments in the Bitcoin ETF market and the anticipated Bitcoin halving, which are major factors driving the current bullish movement.
As of now, Bitcoin’s price stands at $72,155.372, with a trading volume of $55.95 billion in the last 24 hours, highlighting its volatility.
In conclusion, the increasing institutional investments in Bitcoin ETFs have significant implications for the cryptocurrency market as a whole. BlackRock’s substantial Bitcoin holdings and the record-breaking inflows into the U.S. spot Bitcoin ETFs demonstrate the maturity and resilience of the cryptocurrency market, capable of withstanding even the most tumultuous conditions.