BlackRock’s IBIT Surpasses Grayscale to Become Biggest Bitcoin Fund

Black Rock

BlackRock’s iShares Bitcoin Trust (IBIT) has now become the world’s largest Bitcoin exchange-traded fund (ETF), surpassing the Grayscale Bitcoin Trust (GBTC) as per the latest publicly available data.

According to the Apollo Bitcoin Tracker, BlackRock’s spot Bitcoin ETF has shown significant growth, accumulating 288,670 BTC. This surpasses Grayscale’s holdings of 287,450 BTC, establishing BlackRock as a leader in Bitcoin holdings among ETF providers.

Bitcoin ETF Competition: BlackRock vs. Grayscale and Fidelity

A Bloomberg report dated May 29 highlighted that BlackRock’s Bitcoin fund now holds $19.68 billion in Bitcoin, slightly edging out Grayscale’s $19.65 billion, according to their data. Fidelity’s Bitcoin ETF trails behind with $11.1 billion in holdings. Both BlackRock’s and Grayscale’s ETFs were launched in January 2024. Initially, Grayscale’s ETF held 620,000 BTC, which was over 3% of the cryptocurrency’s circulating supply at the time. The fund transitioned from a successful Trust Fund to a spot ETF but has been experiencing consistent daily significant outflows.

In contrast, BlackRock’s ETF has been the top performer since its launch, attracting the majority of inflows among the 11 spot Bitcoin ETFs launched concurrently. The primary reason cited for the substantial outflows from Grayscale’s fund has been its high premium trading fees, maintaining an initial 1.5% commission while competitors launched with only 0.2%.

On May 28, BlackRock’s iBIT recorded an inflow of $102.5 million, while Grayscale’s GBTC experienced an outflow of $105 million, illustrating the shifting dynamics in the Bitcoin ETF market.

BlackRock Funds Invest in Bitcoin ETF as Market Grows

According to regulatory filings from the first quarter of 2024, BlackRock’s income and bond-focused funds have begun investing in its Bitcoin ETF. The Strategic Income Opportunities Fund (BSIIX) acquired $3.56 million worth of IBIT shares, while the Strategic Global Bond Fund (MAWIX) purchased $485,000 of shares, as detailed in Securities and Exchange Commission filings dated May 28.

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Globally, spot Bitcoin ETFs now collectively hold over one million BTC, amounting to more than $68 billion. This constitutes nearly 5.10% of the total Bitcoin supply, reflecting significant institutional interest and investment in the cryptocurrency market.

On May 28, Bitcoin’s price rose by 1.1% to reach $68,550, according to CoinMarketCap data. Currently, its trading price is approximately $67,795, showing slight fluctuations within the market.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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