BlackRock’s Bitcoin ETF Surpasses 500,000 BTC Milestone 🚀
The iShares Bitcoin Trust ETF (IBIT), managed by BlackRock, has made waves by recently becoming the first exchange-traded fund to hold more than 500,000 Bitcoin. As of now, the ETF reportedly holds 500,380 Bitcoin, valued at over $48 billion. This remarkable achievement follows the sale of approximately 400,000 BTC from Grayscale Bitcoin Trust since the start of this year.
The Launch of BlackRock’s Bitcoin ETF 🎉
Launched on January 11, 2024, the BlackRock ETF on Bitcoin was introduced alongside several other spot Bitcoin ETFs that marked their debut on U.S. exchanges that day. Right from its inception, IBIT recorded impressive uptake and interest for various reasons.
The initial stimulus came from the launch of the Grayscale Bitcoin Trust (GBTC), which rebranded itself into an ETF format and had accumulated around 600,000 BTC over the years. This transformation allowed GBTC to liquidate a significant portion of its holdings, resulting in the sale of 400,000 Bitcoin. A considerable portion of these BTC has been acquired by BlackRock’s ETF, significantly boosting its asset reserves.
Remarkably, just over a month into its market entry, IBIT acquired 100,000 BTC, and by the end of three months, it had doubled its holdings to 200,000 BTC.
The surge in popularity for IBIT coincided with a strong wave of Fear of Missing Out (FOMO) around Bitcoin, leading to record trading volumes almost immediately. On its inaugural day, IBIT reported a staggering daily trading volume of $1 billion. By November, it broke through the $5 billion mark on two occasions and exceeded $4 billion on five separate occasions, with monthly trading almost hitting $75 billion—an extraordinary figure for a relatively new asset.
Bitcoin Holdings of BlackRock’s ETF 💰
The continuous growth of Bitcoin held by IBIT indicates a potential for reaching new heights in the forthcoming months. Presently, it competes as one of the most significant holders of Bitcoin. The largest known Bitcoin holder is believed to be Satoshi Nakamoto, who has an estimated stash of over 1 million BTC, but he has not moved any of these coins since 2011.
Following Satoshi, BlackRock’s ETF stands as the second-largest Bitcoin holder, though it’s crucial to note that the 500,380 BTC technically belong to the ETF’s shareholders rather than to BlackRock or iShares. This complexity means that ownership is collectively distributed among many individuals. MicroStrategy ranks third, owning over 400,000 BTC, closely followed by GBTC.
The U.S. government has recently shifted from the fourth to the fifth position in Bitcoin holdings, now closely competing with Fidelity’s ETF. When compared to its rivals, IBIT currently boasts more than double the holdings of the next largest ETF.
If this trajectory continues, BlackRock’s ETF could challenge Satoshi Nakamoto’s position as the leading Bitcoin holder within a year, especially since the exact number of BTC Satoshi possesses remains unclear. Collectively, all Bitcoin ETFs together have crossed the threshold of 1.2 million BTC, surpassing even Satoshi’s purported holdings.
The Total Limit of Bitcoin Supply 🔒
It is crucial to remember that the maximum supply of Bitcoin is capped at 21 million. Currently, nearly 19.8 million Bitcoins are in existence, which leaves just a little over 1.2 million still to be mined, a process that will continue for decades to come.
Out of the nearly 19.8 million Bitcoin currently available, a significant number are likely considered lost indefinitely. These losses predominantly pertain to coins stored in public wallets for which the private keys are no longer accessible. It’s estimated that the 1.1 million BTC associated with Nakamoto are also among those considered lost, especially since he has not transferred any for more than a decade. The consensus is that these coins may have been lost without being designated to anyone as an inheritance.
Total lost Bitcoin could range from 3 to possibly over 5 million BTC. Meanwhile, 1.2 million is held by various ETFs, while around 2.5 million are with centralized exchanges. Approximately 0.15 million is in decentralized finance (DeFi), and just under a million are owned by private institutions and companies. Furthermore, around half a million BTC belong to government entities worldwide.
The remaining BTC—more than 10 million—are held by individuals or private companies without clear identification. It’s worth noting that fewer than 100 addresses globally control over 10,000 BTC, with only four addresses securing over 100,000 BTC, mainly held by exchanges. Interestingly, Satoshi Nakamoto maintained separate addresses for each block mined, possibly generating around 20,000 different addresses in total.
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