Michael Saylor predicts that BlackRock’s iShares Bitcoin Trust (IBIT) will become the largest ETF globally in ten years. IBIT has recently seen $1.3 billion in inflows, contributing to a Bitcoin price jump from $85,000 to $94,000. While analysts note the challenges in reaching this goal, there’s growing investor interest in Bitcoin ETFs, along with notable shifts in trading strategies.
In a bold proclamation, Michael Saylor, the Chairman of MicroStrategy, expressed that the iShares Bitcoin Trust (IBIT) is destined to become the biggest ETF globally in ten years. This statement, made during the Bitcoin Standard Corporation’s Investor Day, comes amid a surge in net inflows for U.S. Bitcoin ETFs, which have amassed about $2.8 billion over just five trading days.
IBIT itself played a significant role, accounting for a sizable $1.3 billion of those inflows. This influx helped propel Bitcoin’s price up from roughly $85,000 to $94,000. The current market cap of IBIT stands at $54 billion, which is modest compared to the Vanguard S&P 500 ETF (VOO), the market leader at roughly $593.5 billion, which is more than ten times IBIT’s size.
Senior ETF Analyst Eric Balchunas from Bloomberg remarked on the potential for IBIT to surpass VOO, yet he cautioned that extraordinary circumstances would be necessary. “It’s possible, especially if IBIT can pull in daily inflows exceeding $1 billion—likely aiming for $3 to $4 billion a day to catch up. That would be quite something!” Balchunas explained.
The annualised bitcoin ETF basis trade, which involves investors going long on the ETF while shorting the CME bitcoin futures, has seen a notable uptick to nearly 10 percent, up from 5 percent earlier this year. This rise, alongside a growth in futures open interest by 2,000 BTC in the past week, suggests that these net ETF inflows may not just be standard directional bets, but indicative of a more nuanced trading strategy.
