Bitcoin price has risen by more than $10,000 since the end of January. Part of the reason for this positive movement lies in the Bitcoin stock market. These proved to be enormously successful. So successful, in fact, that they now collectively own more BTC than MicroStrategy. And all in just 20 days.
Bitcoin ETFs overtake MicroStrategy
A Bitcoin ETF is an exchange fund that investors can invest in. Instead of buying Bitcoin themselves, they buy shares in the fund. The underlying fund will then purchase the Bitcoin. In this way, investors do not have to worry about the security of the crypto themselves and invest in a traditional way, for example through a stock broker.
11 Bitcoin ETFs were approved in the United States in January. US investors, such as large investment firms, can therefore now legitimately invest in Bitcoin. There were initially doubts about the ultimate success of these funds. But 20 days later it’s clear; The funds have attracted a huge amount of capital.
More than $10 billion flowed into the funds in just 20 days. The 9 Bitcoin funds, excluding the Grayscale GBTC fund, now manage 216,309 BTC worth $10.3 billion.
In less than a month, these funds now own more Bitcoin than MicroStrategy, the American company that has itself bought a lot of BTC in recent years. No other publicly traded company owns more Bitcoins than MicroStrategy.
— HODL15Capital 🇺🇸 (@HODL15Capital) February 11, 2024
An important note here is that this affects all ETFs combined. Additionally, GBTC, Grayscale’s Bitcoin fund, is not included. This fund has actually seen a huge outflow over the last 20 days, although that outflow is tapering off and much of it is flowing from this fund into one of the other ETFs.
MicroStrategy continues to buy Bitcoin
MicroStrategy and its former CEO Michael Saylor strongly believe in Bitcoin as an asset. Therefore, it officially made cryptocurrency a part of its cash reserve policy in 2020. Since then, the company has been systematically buying BTC.
This week on Crypto Insiders it was reported that the company is stocking up on new cryptocurrencies. At that time it was 850 Bitcoins. MicroStrategy is well positioned thanks to its systematic investment strategy. You can read how big this profit is now in this article.