BlackRock’s Bitcoin ETF Surpasses MicroStrategy’s Holdings

• BlackRock’s IBIT possesses 197,943 Bitcoin, with a value of roughly $13.5 billion.
• As of March 8th, the price of Bitcoin has finally hit $70,000.

MicroStrategy’s Bitcoin holdings have been surpassed by BlackRock’s spot Bitcoin exchange-traded fund (ETF). As of March 8, around 40 trading sessions after the approval of nine new funds by the U.S SEC on January 10, data collected by BitMEX Research indicates that BlackRock’s IBIT possesses 197,943 Bitcoin, with a value of roughly $13.5 billion.

As institutional demand keeps pushing the price of bitcoin higher, the recently created Bitcoin exchange-traded funds (ETFs)—not including Grayscale’s GBTC—hold assets worth $28 billion. As of March 8th, the price of Bitcoin has finally hit $70,000.

Surging Demand

The crypto community on Twitter reports that OTC trading platforms are experiencing Bitcoin shortages and are resorting to public exchanges to carry out orders. OTC desks usually cater to institutional investors and other large-volume traders.

For its corporate treasury strategy, IT company MicroStrategy has amassed a holding of 193,000 BTC. However, the business is not an ETF provider. Using debt to fund operations and investments, the software business adopts a leveraged operating approach.

The Bitcoin approach at MicroStrategy is getting more attention. The business recently stated its intention to issue debt in order to increase its Bitcoin reserves; the goal is to raise more than $600 million.

Stock in MicroStrategy (MSTR) was dubbed a “leveraged Bitcoin ETF” due to the company’s Bitcoin-centric strategy. Up until this point, the plan has worked. Over the last year, MSTR’s value has increased 642%, which is far more than Bitcoin’s 244% growth. Michael Saylor, CEO of MicroStrategy, has no intention of liquidating the company’s Bitcoin holdings as stated on several occasions.

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