Ishares Bitcoin Trust’s BTC Holdings
Blackrock’s Ishares Bitcoin Trust (IBIT) now holds 11,439 bitcoin, according to the IBIT’s website.
The total value of IBIT’s holdings as of January 12 is approximately $498 million, with bitcoin representing 99.99% of the trust holdings. Blackrock stated that the value shown for “shares” represents the total number of bitcoins held by the trust.
Blackrock’s Trading Strategy
A crypto enthusiast named Martyparty noticed that Blackrock had initially held 50% bitcoin and 50% cash in its ETF. However, the fund recently bought the dip and is now back to holding 100% bitcoin. Martyparty suggests that ETF managers have the flexibility to trade in and out of cash and any currency.
The price of bitcoin surged to $49,000 on the first day of trading but dropped below $42,000 on the second day. Currently, bitcoin is trading at $42,885.90.
SEC Approval and Caution
Blackrock’s Ishares Bitcoin Trust was among the 11 spot bitcoin ETFs approved by the SEC. However, SEC Chairman Gary Gensler clarified that the approval does not imply endorsement of bitcoin and warned about the risks associated with crypto investments. SEC Commissioner Hester Peirce expressed disappointment in the delay of spot bitcoin ETF approval, believing that it wasted opportunities from the past decade.
Hot Take: Blackrock’s Bitcoin ETF Quickly Accumulates $500 Million Worth of BTC
Blackrock’s Ishares Bitcoin Trust (IBIT) has acquired 11,439 bitcoin valued at nearly $500 million within two days of trading on the Nasdaq stock exchange. With an initial holding of 50% bitcoin and 50% cash, the fund quickly shifted to holding 100% bitcoin. However, the price of bitcoin experienced volatility, reaching $49,000 and then dropping to $42,000. While the SEC’s approval of the ETFs does not signify endorsement of bitcoin, it represents an opportunity for investors. Despite the delay in approval, Commissioner Hester Peirce believes it has come at the cost of missed opportunities over the past decade.
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