BlackRock’s Bitcoin exchange-traded fund (ETF) has surpassed MicroStrategy’s cryptocurrency holdings in terms of value. BitMEX Research data shows that BlackRock’s IBIT currently holds 197,943 Bitcoin, which is worth over $13.5 billion as of March 8. This comes after the Securities and Exchange Commission approved nine new funds on January 10. Apart from Grayscale’s GBTC, the total assets held by the newly launched Bitcoin ETFs amount to $28 billion, reflecting the increasing institutional demand for the cryptocurrency. On March 8, the price of Bitcoin crossed the $70,000 mark for the first time.
Reports suggest that over-the-counter (OTC) trading platforms are facing a shortage of Bitcoin and are turning to public exchanges to meet their orders. Large-volume traders, including institutional investors, usually rely on OTC desks. Despite not being an ETF issuer, technology firm MicroStrategy has built a portfolio of 193,000 BTC as part of its corporate treasury strategy. The company follows a leveraged operating strategy, where debt is used to finance operations and investments. MicroStrategy is further strengthening its Bitcoin strategy by planning a debt offering to raise over $600 million.
MicroStrategy’s Bitcoin-centric approach has led to its stock, MSTR, being referred to as a “leveraged Bitcoin ETF.” This strategy has proven successful, with MSTR experiencing a 642% surge in the past 12 months, surpassing Bitcoin’s 244% gains during the same period.
MicroStrategy’s CEO, Michael Saylor, has no intention of selling the company’s Bitcoin reserves. In fact, he plans to continue buying more Bitcoin, stating that it is his exit strategy. Saylor believes that Bitcoin is technologically superior to gold, the S&P 500, and real estate, despite these asset classes having larger market capitalizations than Bitcoin.