BlackRock's Bitcoin ETF Dominates Market Despite Sell-Off

BlackRock's Bitcoin ETF has surpassed 50% market share, despite a recent three-day sell-off. The world's largest asset manager now holds over $56.8 billion worth of Bitcoin, accounting for 50.4% of the holdings of all US ETF issuers, which collectively manage over $112 billion, according to Dune data. This milestone comes over a year after the US spot Bitcoin ETFs first debuted for trading on Jan. 11, 2024.

However, Bitcoin ETFs have experienced a recent three-day selling streak, with over $364 million worth of cumulative net outflows on Feb. 20. BlackRock's iShares Bitcoin Trust ETF (IBIT) accounted for $112 million of these outflows, according to Farside Investors data. Despite these outflows, Bitcoin's price has remained resilient, staging a recovery above $99,300 on Feb. 21, although it remains down nearly 3% on the monthly chart.

ETF investments played a significant role in Bitcoin's 2024 rally, contributing approximately 75% of new investment as Bitcoin recaptured the $50,000 mark on Feb. 15. However, some industry leaders are concerned about Bitcoin's range-bound price action, which has been ongoing for over two months. Samson Mow, CEO of Jan3 and founder of Pixelmatic, suggested that this price action may be manufactured, stating that the "very tight range in which you’re trading just doesn’t look natural at all."

Despite the recent sell-off and concerns about Bitcoin's price action, BlackRock's Bitcoin ETF continues to dominate the market, holding over 50% of the total market share. As the world's largest asset manager, BlackRock's involvement in the Bitcoin ETF market signals a growing acceptance and interest in cryptocurrencies among institutional investors. The future of Bitcoin ETFs and their impact on the broader cryptocurrency market remains to be seen, but the recent developments indicate a maturing and increasingly institutionalized market.