ETFs
BlackRock’s IBIT Topples Grayscale’s GBTC to Become Leading US Spot Bitcoin ETF
BlackRock’s IBIT has surpassed Grayscale’s GBTC, becoming the largest spot Bitcoin ETF in the United States.
The latest turnaround comes after BlackRock’s spot Bitcoin exchange-traded fund (ETF) saw an inflow of $102 million on Tuesday.
IBIT now holds nearly $20 billion worth of bitcoin, as reported on its product page Wednesday morning. In contrast, GBTC holds $19.7 billion after experiencing capital outflows of $105 million on the same day.
May 28, BlackRock incorporated the Bitcoin ETF in its income and bond-focused funds during the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) holds over $3.5 million of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.
This development, almost five months after the approval of spot Bitcoin ETFsmarks an important milestone in the field of crypto-financial products.
Grayscale charged a 1.5% fee for the GBTC ETF, which is considerably higher than BlackRock’s IBIT. As a result, the gray levels are gradually loss of attractiveness to investors who preferred the lower fees offered by IBIT.
“Grayscale held 620,000 BTC at the time of conversion (January 10, 2024), which represented more than 3% of the circulating supply, but refused to lower the fees (1.5% compared to 0.2% for its peers), even after investors withdrew more than 330,000 BTC. So much for the “differentiated” strategy”, HODL15Capital said.
Meanwhile, IBIT purchasing activity has recently intensified due to bullish sentiment for Bitcoin and the broader crypto market. This momentum was further supported by the listing approval of ether ETFs (ETH) and renewed support for crypto among U.S. political parties.
This led to a sudden change in the IBIT, which recorded a low or zero entry before May 15 and saw its first-ever day of capital outflows in April, leading to bearish sentiment.