BlackRock’s IBIT Bitcoin Holdings Soar to 700K, Analyst Says
- The iShares ETF is buying 40,000 coins a month: Shaun Edmondson.
- The purchases come as the SEC’s Pierce says Bitcoin ETF redemptions are on the horizon.
BlackRock Inc.’s (BLK) spot Bitcoin ETF is now the second-biggest holder of the cryptocurrency, holding 700,439 coins, scooping up the asset as supplies tighten.
The $76.3 billion iShares Bitcoin Trust (IBIT) ranks behind the 1.2 million coins held by Satoshi Nakamoto and ahead of Strategy Inc.’s (MSTR)'s 597,325 coins, according to data compiled and posted on X by crypto analyst Shaun Edmondson. Nakamoto is the pseudonym for the anonymous programmer or programmer group credited with creating the Bitcoin software.
IBIT Purchases Stack Up
IBIT’s purchases come to 40,000 a month, and the company is on pace to catch Nakamoto by next May, Bloomberg Analyst Eric Balchunas posted on X.
Big holders are boosting purchases as the Bitcoin supply continues to drop, with about 450 created, or mined, daily, Edmondson wrote in his post. Demand is gaining for the asset as cryptocurrencies move into the mainstream, with Bitcoin increasingly used as a safe-haven hedge against market volatility similar to the role gold has played.
“BTC treasury companies keep stacking and total supply keeps falling ... ‘Get some / get yours’ if you can, while you still can,” Edmonson tweeted July 8.
The purchases also come against the backdrop of an expected jump in demand for coins. So-called in-kind redemptions, where crypto ETF holders can swap their shares for the actual cryptocurrency rather than cash, are on the horizon and generating interest, Securities and Exchange Commission Commissioner Hester Pierce said at a conference at the end of June, Forbes reported last week.
In-Kind Crypto Redemptions
BlackRock has asked the SEC for permission to offer in-kind redemptions with crypto; redemptions are currently done in cash.
IBIT holds more than half of the 1.3 million coins owned by U.S. spot Bitcoin exchange-traded funds, Edmondson tweeted without disclosing his sources or methodology.
Grayscale’s two spot ETFs, the $20.2 billion Grayscale Bitcoin Trust ETF (GBTC) and the $4.9 billion Grayscale Bitcoin Mini Trust ETF (BTC) together hold the second-biggest quantity with 229,418, while Fidelity’s $22.1 billion Fidelity Wise Origin Bitcoin Fund (FBTC) holds the third-most at 204,118. The rest is spread among seven remaining funds.
