TL;DR
- BlackRock’s iShares Bitcoin Trust (IBIT) has become the first spot Bitcoin ETF in the U.S. to hold over 100,000 BTC, marking a significant milestone in its journey since its launch on Jan. 11, 2024.
- IBIT has seen a massive surge in demand from investors, amassing 105,280 BTC in holdings on Feb. 13, a staggering 3,700% increase since its debut.
- Unlike other spot Bitcoin ETFs, IBIT offers a low-cost and efficient way to invest in Bitcoin with a 0.95% management fee, which is lower than GBTC’s 2% fee.
BlackRock, the world’s largest asset manager, has reached a new milestone in its Bitcoin ETF journey. The firm’s iShares Bitcoin Trust (IBIT) now holds over 100,000 BTC, making it the first spot Bitcoin ETF in the U.S. to achieve this feat.
IBIT, which launched on Jan. 11, 2024, along with 10 other issuers, has seen a massive surge in demand from investors who want exposure to the leading cryptocurrency. According to data from BlackRock, IBIT amassed 105,280 BTC in holdings on Feb. 13, representing a staggering 3,700% increase since its debut.
The iShares Bitcoin ETF has also outperformed its competitors in terms of daily net inflows, attracting $493 million on Feb. 13 alone. The total inflows from 10 spot Bitcoin ETFs reached a record $631.3 million on the same day, indicating a growing appetite for the new investment vehicle.
BlackRock’s success with IBIT comes amid a bullish rally for Bitcoin, which breached the $1 trillion market cap for the second time in history on Feb. 14. The cryptocurrency also surpassed $51,000 for the first time since November 2021, after initially touching the $50,000 price mark on Feb. 12.
Why IBIT is Outperforming Other Spot Bitcoin ETFs in the Market
The spot Bitcoin ETFs in the U.S. have been hailed as a game-changer for the crypto industry, as they provide a more convenient and regulated way for investors to access the digital asset. Unlike previous products such as the Grayscale Bitcoin Trust (GBTC), which trades at a premium or discount to the underlying asset, the spot Bitcoin ETFs track the spot price of Bitcoin directly.
However, not all spot Bitcoin ETFs have been equally successful. GBTC, which converted to a spot Bitcoin ETF in January, has been losing its market share and reducing its holdings. The trust now holds 463,475 BTC, down 25% from its peak of 619,220 BTC.
BlackRock’s IBIT, on the other hand, has been gaining momentum and popularity, as it offers a low-cost and efficient way to invest in Bitcoin. The ETF charges a 0.95% management fee, which is lower than GBTC’s 2% fee. IBIT also has a high liquidity and trading volume, making it an attractive option for both retail and institutional investors.
