Based on the available information, the top holdings of the iShares Bitcoin Trust ETF (IBIT) are:
1. US Dollars: This makes up 99.96% of the fund's holdings.
2. Deposits with Broker for Short Positions: This accounts for the remaining 0.04% of the fund's holdings.
It's important to note that IBIT is designed to track the performance of Bitcoin. While the fund's assets are primarily held in US dollars, the ETF's objective is to reflect the performance of Bitcoin's price.
The structure of holding mostly cash is likely due to the nature of how this Bitcoin ETF operates. Rather than holding Bitcoin directly, it may use financial instruments or contracts to achieve exposure to Bitcoin's price movements while maintaining its assets in a more liquid form.
This composition aligns with the fund's investment objective, which is to seek to reflect generally the performance of the price of Bitcoin[5]. The cash holdings allow the fund to manage liquidity and facilitate the creation and redemption process typical of ETFs, while still providing investors with exposure to Bitcoin's price movements.
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