BlackRock’s Updated Bitcoin (BTC) Holdings Uncovered, Hold on Tight

In a stunning revelation, BlackRock, the world’s largest hedge fund, has rapidly amassed an impressive 16,361 BTC for its recently listed spot Bitcoin ETF. The iShares Bitcoin Trust (IBIT) now boasts a staggering market value of $707.43 million, making it a significant player in the digital currency arena.

Surpassing even Tesla’s notable accumulation, BlackRock’s Bitcoin holdings now rank as the third-largest among public companies, underscoring the swift success of its newly launched ETF. Notably, this remarkable achievement transpired less than a week after the historic debut of spot Bitcoin ETFs on the NASDAQ.

Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman… https://t.co/wV1zQFtPW1

— Eric Balchunas (@EricBalchunas) January 16, 2024

According to Bloomberg’s senior analyst Eric Balchunas, IBIT has exhibited remarkable market activity. On Tuesday, Jan. 16, the ETF outpaced all 500 new 2023 ETFs, underlining the heightened interest and trading volume surrounding BlackRock’s cryptocurrency venture.

Bad apple

However, this meteoric rise in BlackRock’s Bitcoin holdings is not without challenges. The positive inflows into ETFs coincide with outflows from the Grayscale fund. In an effort to address financial woes, Grayscale transferred 9,000 BTC, equivalent to $385 million, to Coinbase for liquidation, affecting spot BTC sales.

Grayscale sent another 9k BTC worth $385 million to a suspected Coinbase Prime deposit address 20 minutes ago. The currently marked Grayscale address still holds 617,000 BTC, worth $26.22 billion.https://t.co/79xyMqJylW https://t.co/oj9Yb0rkXy

— Wu Blockchain (@WuBlockchain) January 16, 2024

As Grayscale continues to manage a substantial 617,000 BTC, the fund’s lingering influence may pose constraints for the cryptocurrency market. Investors, eager to exit the ETF, could intensify pressure on spot BTC sales on Coinbase, adding a layer of complexity to the evolving landscape.

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