Bitcoin ETF

Wednesday

Bitcoin

BlackRock’s IBIT has surpassed Grayscale’s GBTC, becoming the largest spot bitcoin ETF in the U.S.
The latest flip comes after BlackRock’s spot bitcoin exchange-traded fund (ETF) saw a $102 million inflow on Tuesday.
IBIT now holds nearly $20 billion worth of bitcoin, as reported on its product <a href="https://www.blackrock.com/us/individual/products/333011/ishares-bitcoin-trust" target="_blank" rel="noopener noreferrer nofollow">page </a>on Wednesday morning. In contrast, GBTC holds <a href="https://etfs.grayscale.com/gbtc" target="_blank" rel="noopener noreferrer nofollow">$19.7 billion</a> after experiencing $105 million in outflows on the same day.
On May 28, BlackRock <a href="https://www.sec.gov/Archives/edgar/data/1738078/000175272424120138/BLK_Strat_Inc_Opps.htm" target="_blank" rel="noopener noreferrer nofollow">incorporated </a>the bitcoin ETF into its income and bond-focused funds during the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) holds over $3.5 million worth of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.
This development, nearly five months after the <a href="https://crypto.news/sec-approves-spot-bitcoin-etf-on-accelerated-basis/" rel="noopener noreferrer nofollow">approval of spot Bitcoin ETFs</a>, marks a significant milestone in crypto-financial products.
You might also like: <a href="https://crypto.news/spot-bitcoin-etf-investments-institutions/" rel="noopener noreferrer nofollow"> K33 Research: Over 900 institutions invested $11b in spot Bitcoin ETFs </a>
Grayscale charged a 1.5% fee for the GBTC ETF, which is considerably higher than BlackRock’s IBIT. As a result, Grayscale gradually <a href="https://crypto.news/grayscales-bitcoin-etf-hits-1-6b-outflows-hours-before-halving/" rel="noopener noreferrer nofollow">lost appeal among investors</a> who preferred the lower fees offered by IBIT.
“Grayscale held 620,000 BTC at the time of the conversion (January 10, 2024), which was more than 3% of circulating supply, but refused to lower the fee (1.5% vs 0.2% for peers), even after investors pulled 330,000+ BTC. So much for the ‘differentiated’ strategy,” HODL15Capital <a href="https://x.com/HODL15Capital/status/1795637263310954651" target="_blank" rel="noopener noreferrer nofollow">said</a>.
Meanwhile, buying activity for IBIT has ramped up recently due to <a href="https://crypto.news/ethereum-etfs-fit21-bill-bitcoin-71k-weekly-recap/" rel="noopener noreferrer nofollow">bullish sentiment for Bitcoin</a> and the broader crypto market. The momentum was further supported by the listing <a href="https://crypto.news/sec-greenlights-spot-ether-etfs-but-ether-price-shows-little-movement/" rel="noopener noreferrer nofollow">approval for ether (ETH) ETFs </a>and renewed support for crypto among U.S. political parties.
This led to a sudden shift in IBIT, which recorded low or <a href="https://crypto.news/blackrock-bitcoin-etf-attracts-no-inflows-for-4th-consecutive-day/" rel="noopener noreferrer nofollow">zero inflows </a>before May 15 and saw its first-ever day of outflows in April, leading to bearish sentiment.
Read more: <a href="https://crypto.news/wells-fargo-grayscale-bitcoin-etf/" rel="noopener noreferrer nofollow"> Wells Fargo invests in Grayscale spot Bitcoin ETF </a>

BlackRock’s IBIT flips Grayscale’s GBTC to lead US spot Bitcoin ETFs

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