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BlackRock Pours Half A Billion Dollars Into Bitcoin In First Two Days of New ETF

January 13, 2024
x min read

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:

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

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