BlackRock Tops MicroStrategy in Institutional BTC Holdings

BlackRock’s Bitcoin ETF surpasses MicroStrategy to become the world’s largest institutional holder of Bitcoin.

Larry Fink with in his golden empire with plenty of Bitcoins.
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  • BlackRock’s ETF has made traditional finance more competitive in the cryptocurrency investment space.
  • IBIT has offered a new, easy way for investors to gain exposure to Bitcoin through a traditional ETF.
  • This surge in ETF investment has suggested growing mainstream adoption of Bitcoin by institutional investors.

The landscape of institutional investment in Bitcoin has shifted dramatically since the launch of the iShares Bitcoin Trust (IBIT) in January. With growing mainstream adoption, BlackRock’s ETF has now surpassed long-time leader MicroStrategy in total Bitcoin holdings.

BlackRock’s IBIT ETF Adds Record Amount

BlackRock, the world’s largest asset manager, launched IBIT on January 11, offering investors a way to gain exposure to Bitcoin through a traditional exchange-traded fund. The ETF has seen steady inflows throughout its short existence, culminating in a particularly strong showing this week. 

According to data from HODL15Capital, IBIT added 31,588 BTC to its holdings this week, marking its third-best week since launch. This surge in activity has propelled IBIT to the top of the Bitcoin holdings list for institutional investors. 

With a total of 196,088 BTC, BlackRock’s ETF now edges out MicroStrategy, which currently holds 193,000 BTC. MicroStrategy, led by outspoken Bitcoin bull Michael Saylor, has been a major player in the institutional Bitcoin space, acquiring its holdings through a series of strategic purchases. 

MicroStrategy’s Bitcoin Bet Pays Off

MicroStrategy’s average purchase price is $31,554 per BTC, which translates to a current market value of over $13 billion, a significant return on their initial investment.

Prior to the introduction of Bitcoin ETFs, investors often viewed MicroStrategy as an indirect way to gain exposure to Bitcoin within the traditional stock market. However, the rise of IBIT and other similar ETFs signifies a shift in the landscape. 

With these new financial products offering a more direct path to Bitcoin ownership, traditional finance is becoming increasingly competitive in cryptocurrency investing. This development suggests that Bitcoin may continue to see significant institutional adoption in the coming months and years.

On the Flipside

  • While IBIT currently holds more Bitcoin than MicroStrategy, it has only been operational since January 2024. MicroStrategy has a longer track record of holding Bitcoin through various market conditions.
  • Bitcoin ETFs are a new financial product whose regulatory landscape is still evolving.

Why This Matters

Beyond just a changing of the guard, IBIT’s surpassing of MicroStrategy highlights a maturing crypto market. Established financial institutions are offering accessible and regulated Bitcoin investment options, potentially leading to a new wave of mainstream adoption.

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To learn more about the recent surge in Bitcoin’s price and the corresponding increase in Bitcoin ETFs, read here:
BlackRock Bitcoin ETF Marks New Inflow High as BTC Claims ATH

To learn more about BlackRock’s decision to add Bitcoin ETFs to its Global Allocation Fund (MALOX), read here:
BlackRock to Add Bitcoin ETFs to MALOX: What Does This Mean?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.