- Bitcoin ETFs went on a shopping spree after Bitcoin made history.
- BlackRock particularly thrived, adding tens of thousands of bitcoins to its portfolio.
- Tuesday’s historic rally helped BlackRock and the Bitcoin ETF market achieve major milestones.
Bitcoin made history on Tuesday, March 5, soaring to a new all-time high. The excitement surrounding this breakthrough, breaking a three-year curse, sent shockwaves through the markets, particularly ETFs, which saw an influx of billions of dollars.
As usual, the world’s largest asset manager, BlackRock, led the charge, achieving yet another major milestone this week.
BlackRock and Bitcoin Make History
BlackRock’s iShares Bitcoin ETF devoured over $788 million worth of bitcoin on Tuesday as the reigning crypto king registered a new all-time high above $69,000 for the first time since 2021. The ETF recorded a 30% increase from its previous high of $609 million, set on February 29.
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According to BlackRock data, it added a whopping 12,600 bitcoins during Bitcoin’s brief crash to $59,000 following its record high. At the time of writing, IBIT held over 183,000 bitcoins, worth approximately $11.5 billion, inching closer to MicroStrategy’s 193,000 stack.
In second place, Fidelity’s FBTC closely trailed BlackRock with $125 million inflows on Tuesday, followed by Ark Invest 21 Shares’ modest $64 million inflow.
Trading volume of spot Bitcoin ETFs also hit a record of $10 billion on Tuesday, breaking the previous record of $7.64 billion on February 28. Among them, BlackRock registered a record $3.76 billion in trading volume, while Grayscale’s GBTC and Fidelity’s FBTC generated $2.81 billion and $2.05 billion, respectively.
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Since approval, BlackRock’s Bitcoin ETF has remained the most popular option, thanks to the influence and reliability of the asset manager, as well as its incredibly low fees. Bitcoin traded just under $66,000 at press time, with a daily trading volume exceeding $67 billion.
On the Flipside
- With the intense institutional interest in Bitcoin, there are concerns that retail investors could face challenges in accessing and participating in the market.
- Bitcoin’s ascent to $69,000 and its subsequent drop wiped out over $1 billion in 24 hours across crypto-tracked futures.
- With Bitcoin producing 900 coins every day and that number set to halve after April, a looming supply crunch is on the horizon as issuers ramp up their accumulation.
Why This Matters
Bitcoin ETFs, especially BlackRock’s, are growing at an alarming rate, gobbling up crypto. While its recent success charts an interesting and positive course for the market, potentially driving prices higher, it could also hamper retail investors’ ability to participate and access the market.
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