BlackRock's Bitcoin ETF Triumphs Over MicroStrategy's Holdings Amid Soaring Institutional Demand
Summary:
BlackRock's Bitcoin exchange-traded fund (ETF), IBIT, surpasses MicroStrategy's Bitcoin holdings, with a value over $13.5 billion as of March 8. New Bitcoin ETFs hold assets worth $28 billion, boosting the cryptocurrency's institutional demand. Reports also show Bitcoin scarcity in over-the-counter (OTC) trading platforms. MicroStrategy, despite not being an ETF issuer, maintains a considerable Bitcoin portfolio and plans a debt offering to reinforce its Bitcoin reserves.
BitMEX Research reveals that BlackRock's Bitcoin exchange-traded fund (ETF), IBIT, has exceeded the Bitcoin holdings of MicroStrategy with a cryptocurrency volume of 197,943, valued at over $13.5 billion as of March 8. This comes about 40 trading sessions following the sanction of nine fresh funds by the Securities and Exchange Commission on January 10. Apart from Grayscale’s GBTC, new Bitcoin ETFs hold $28 billion in assets in total, further buoying the cryptocurrency due to institutional demand. On March 8, Bitcoin’s price crossed the $70,000 line for the first time.
Reports from X (previously known as Twitter) indicate that Bitcoin is in such high demand that over-the-counter (OTC) trading platforms are depleting their reserves and resorting to public exchanges to fulfill orders. Large-scale traders, like institutional investors, are generally catered to by OTC desks.
Despite not being an ETF issuer, tech firm MicroStrategy has amassed a portfolio of 193,000 BTC as part of its corporate treasury approach. The software company utilizes a leveraged operational strategy wherein debt is employed to fund operations and investments. MicroStrategy is further committing to its Bitcoin strategy by planning a debt offering aimed at raising more than $600 million to reinforce its Bitcoin reserves. This Bitcoin-focused approach has branded MicroStrategy's (MSTR) stock as a “leveraged Bitcoin ETF." In the past 12 months, MSTR has surged 642%, vastly outshining Bitcoin’s 244% growth over the same timeframe.
Michael Saylor, CEO of MicroStrategy, remains committed to maintaining the company’s Bitcoin reserves. In a Bloomberg interview on February 20, he stated his intent to perpetually invest in Bitcoin. He further highlights the technical superiority of cryptocurrency compared to gold, the S&P 500, and real estate, albeit the latter three boasting much larger market caps than Bitcoin.
Published At
3/10/2024 9:43:03 PM
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