The BlackRock iShares Bitcoin Trust (IBIT) has surpassed the 500,000 BTC mark, equivalent to $48 billion in total assets under management on Monday, less than a year after it began trading on January 11.
According to the latest fund report, BlackRock's IBIT has accumulated 496,854 BTC as of November 29. A net inflow of $338.3 million (around 3,526 BTC) yesterday was enough to reach this milestone, bringing the total to 500,380 BTC, accounting for 2.38% of the total 21 million BTC supply, according to data from K33.
"BlackRock crossing the 500,000 BTC mark is a significant milestone after a tremendously successful first year," shared Vetle Lunde, Head of Research at K33. "IBIT remains the third-largest ETF vehicle in the US by YTD inflows, surpassing even the $314 billion Invesco QQQ giant."
"Notably, these products are well-positioned to continue growing, with institutional ownership in IBIT reaching 24% by the end of Q3 2024," Lunde added. "We expect these tools to become a standard portfolio diversification factor, with large funds allocating 1-3% of capital to these funds due to the improving risk-adjusted returns of BTC. While reaching 1 million BTC AUM is entirely achievable, we anticipate softer inflows into these products in 2025 due to a strong BTC ATH, reducing the impact on nominal capital flows."
"With 500,000 BTC in hand, IBIT has surpassed MSTR's holdings in less than a year since it started buying BTC," shared Peter Chung, Head of Research at Presto, with The Block. "This is impressive, but it's important to remember that the BTC in IBIT belongs to its shareholders, not BlackRock itself. In the long run, I don't rule out the possibility of IBIT holding 1 million BTC. Coincidentally, 1 million BTC is also the figure that Senator Lummis proposed for the US government in her Bitcoin Strategic Reserve Act. 1 million BTC would be around 5% of the total BTC supply, equivalent to the US government's holding in the global gold reserve."
In an interview with Fox Business after IBIT surpassed the 250,000 BTC mark in March, BlackRock CEO Larry Fink said, "IBIT is the fastest-growing ETF in history," and expressed surprise at the rise of Bitcoin. At the time, Bitcoin was trading around $69,000 and has since increased by 38%, currently trading around $95,000.
"The strong and persistent inflows into IBIT and similar funds throughout the year have been the primary driver pushing BTC to new ATHs and highlighting the extent to which ETFs have improved BTC accessibility for new capital sources," Lunde said.
In total, US spot Bitcoin ETFs attracted a net inflow of $353.6 million on Monday, continuing the positive growth trend that saw them add a record $6.6 billion in November. According to data compiled by The Block, their cumulative net inflows since the launch of these funds have now reached $31.2 billion.
US spot Bitcoin ETFs are rapidly approaching the estimated 1.1 million BTC held by Bitcoin's anonymous founder, Satoshi Nakamoto, with around 20,000 BTC remaining to reach this milestone.
The estimate of Satoshi's BTC holdings is based on detailed analysis of the early Bitcoin mining patterns conducted by researchers like Sergio Demian Lerner, who identified a specific "Patoshi Pattern" in the blockchain. Satoshi is believed to have mined around the first 22,000 blocks, which, at the 50 BTC block reward at the time, would have created a total of 1.1 million BTC.
However, some researchers argue that this figure may be inflated due to overlapping mining patterns or unverified assumptions about Satoshi's activities in Bitcoin's early days, suggesting the number may be around 600,000 BTC to 700,000 BTC. Others have estimated Satoshi's Bitcoin holdings to be as high as 1.5 million BTC.
Meanwhile, US Ethereum ETFs recorded a net inflow of $24.2 million on Monday, led by BlackRock's ETHA with $55.9 million. In total, these ETFs generated a record $1.1 billion in net inflows in November.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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According to The Block
