Mentioned:
BlackRock is on a Bitcoin buying spree.
What’s happening:
- The world’s largest asset manager BlackRock has purchased $497M USD of Bitcoin in the first two days since launching their spot Bitcoin ETF
- BlackRock’s spot Bitcoin ETF, known as IShares Bitcoin Trust (NASDAQ: IBIT), is already one of the most highly traded spot Bitcoin ETFs in the United States
By the numbers:
- BlackRock’s spot Bitcoin ETF currently owns 11,439 Bitcoin
- On average only 900 new Bitcoin are produced each day, so BlackRock’s purchases equate to roughly 13 days of total Bitcoin production
- Approximately $1.4B USD of inflows went into the 11 newly approved spot Bitcoin ETFs in the first 48 hours of trading
Why it matters:
- The flurry of purchases from BlackRock represent a new paradigm for Bitcoin, which is the rapid acceleration of institutional capital beginning find its way to digital assets after the landmark approval from the SEC for spot Bitcoin ETFs to be listed on US stock exchanges
Going deeper:
- Spot Bitcoin ETFs could add enormous pressure to the supply and demand dynamics of Bitcoin, which many see as one of the largest catalysts for the future price of Bitcoin
- The approval of spot Bitcoin ETFs has come right as many publicly listed Bitcoin miners are breaking all time records for total revenue and on-chain transaction fees
