HomeNewsBlackRock's IBIT Ignites Bitcoin Surge: Hits $44,500, Eyes Set on $50,000 Mark

BlackRock’s IBIT Ignites Bitcoin Surge: Hits $44,500, Eyes Set on $50,000 Mark

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  • BlackRock’s spot Bitcoin ETF leads with $341.2 million in trading volume, outperforming competitors in the evolving cryptocurrency investment landscape.
  • Bitcoin’s price surges over $44,000, driven by increased accumulation by large investors and record highs in U.S. equity indices.

The landscape of cryptocurrency investment is witnessing a significant shift, with BlackRock’s spot Bitcoin Exchange-Traded Fund (ETF) leading the charge in trading volume. As of February 7, 2024, BlackRock’s ETF has recorded a staggering $341.2 million in trades, indicating a clear preference among investors for this particular financial product.

This development is part of a broader trend in the cryptocurrency market, which saw the total volume of the broad spot BTC ETF market surpass $1 billion on the same date, with a total flow nearing $2 billion, according to data from Bloomberg Intelligence.

BlackRock Dominates Spot Bitcoin ETF Market

The spotlight shines brightly on IBIT, BlackRock’s spearhead in the spot Bitcoin ETF arena, which has notably outperformed its competitors, including the Sonnenshein-led Grayscale Bitcoin Trust (GBTC). With IBIT’s trading volume reaching $341.2 million, it has nearly a $50 million lead over GBTC, which recorded a trading volume of $296.5 million.

This rivalry between Grayscale and BlackRock is intensifying, especially after the United States Securities and Exchange Commission (SEC) greenlit their respective spot BTC ETF applications, along with those from Fidelity Investments, Bitwise, Invesco Galaxy, among others.

The inception of the spot Bitcoin ETF market on January 11 marked a pivotal moment, with Grayscale initially dominating the market. However, it wasn’t long before BlackRock and Fidelity began to threaten its reign, showcasing the dynamic and competitive nature of the market.

The fluctuating fortunes of these financial giants underscore the volatile character of cryptocurrency investments, with BlackRock eventually overtaking Grayscale after several days of market fluctuations.

The battle for dominance saw BlackRock’s spot Bitcoin ETF cumulative volume reaching approximately $303.4 million by February 1, surpassing Grayscale’s GBTC, which had a volume of $291.7 million. However, this victory was short-lived as GBTC reclaimed the lead in the spot Bitcoin ETF market with a significant trading volume, almost $100 million above BlackRock’s IBIT.

Despite these shifts, the latest data indicates that it’s BlackRock’s turn to hold the baton of the highest traded spot Bitcoin ETFs, with Fidelity securing the third position in terms of trading volume.

BTC Price Hits Four-Week High Amid Investor Optimism

In parallel with these developments in the ETF market, the Bitcoin price itself surged to over $44,000, reaching a fresh four-week high. This increase is attributed to a heightened BTC accumulation by large holders and the achievement of new all-time highs in U.S. stock markets.

The largest and oldest crypto by market value experienced a 2.5% advance over the past 24 hours, outpacing the CoinDesk 20’s 1.6% gain during the same timeframe. Meanwhile, Ethereum’s ether also saw gains, surpassing $2,400 amid optimism surrounding spot ETFs.

Bitfinex analysts earlier highlighted that increased selling by miners had been a potential reason for the recent pressure on BTC prices.

However, an opposite dynamic emerged, likely overwhelming sellers, as large investors, or “bitcoin whales,” increased their asset accumulation. According popular analyst Ali, the number of bitcoin wallets holding over 1,000 tokens rose to a multi-month high of 73, indicating a significant interest and confidence in Bitcoin as an investment.


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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628