Bitcoin ETF Market Heats Up as Blackrock IBIT Surpasses 200,000 BTC

BlackRock’s iShares Bitcoin Trust (IBIT) has witnessed a significant surge, now holding over 200,000 Bitcoins valued at about $14.76 billion as of March 11, 2024.

This remarkable rise, marking a staggering 116% increase, follows a sudden influx of institutional investments into the spot Bitcoin ETFs market. This surge isn’t just a triumph for Bitcoin; it’s a significant moment for the entire digital assets market.

A Growth for the Books

BlackRock’s IBIT now boasts over 200,000 Bitcoins, with a combined value of $14.76 billion.

The released data also sheds light on the iShares Bitcoin Trust’s Net Asset Value (NAV) of $41.27 on March 11, 2024, with a 4.55% increase in NAV on the same day.

BlackRock has also provided insights into IBIT’s fees, revealing a 0.25% Sponsor Fee. However, the company has opted for a bold move, announcing a fee waiver for the first 12 months, effectively reducing the Sponsor Fee to 0.12% for the first $5.0 billion of the Trust’s assets. Following this period or if the fund exceeds $5.0 billion within the year, the Sponsor’s Fee will return to 0.25%.

Did You Know? MicroStrategy Dethroned: BlackRock ETF Becomes Top Bitcoin Holder

Institutional Investors Flood the Markets

Institutional investment in Bitcoin ETFs is witnessing a surge. Recent data shows a massive $505.6 million inflow into the US Spot Bitcoin ETFs market, highlighting a strong institutional interest, according to the provisional data of Farside UK.

BlackRock’s IBIT and Fidelity’s Bitcoin Trust (FBTC) have collectively received a staggering $775 million in inflows. Notably, on February 20th, BlackRock’s IBIT reached a historic pinnacle with a $562.9 million inflow, while FBTC saw a $215.5 million inflow.

Despite the overall surge, Grayscale’s Bitcoin Trust (GBTC) has experienced significant outflows.

Market Dynamics and Future Outlook

This surge in Bitcoin and ETF inflows coincides with Bitcoin’s climb to a new all-time high, surpassing $72,000. Analysts attribute this uptrend to positive developments in the Bitcoin ETF space and anticipation surrounding the Bitcoin halving.

Bitcoin is currently priced at $72,155.372, with a 24-hour trading volume of $55.95 billion.

The influx of institutional investments into Bitcoin ETFs carries significant implications. BlackRock’s substantial Bitcoin position and record-breaking inflows into the US Spot Bitcoin ETFs highlight the market’s maturity and resilience, even amidst turbulent times.

Read More: Crypto Bull Run Begins: TOP 10 Altcoins to 10x Before Bitcoin Halving