BlackRock’s IBIT has overtaken Grayscale’s GBTC to become the largest spot Bitcoin ETF in the U.S.
This shift occurred after BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced a $102 million inflow on Tuesday.
As of Wednesday morning, the IBIT product page states that it holds close to $20 billion in Bitcoin.
On May 28, BlackRock integrated its Bitcoin ETF into its income and bond-focused funds during the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) now includes over $3.5 million worth of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.
This move, occurring nearly five months after the approval of spot Bitcoin ETFs, represents a significant milestone in the development of crypto-financial products.
Grayscale charged a 1.5% fee for the GBTC ETF, significantly higher than BlackRock’s IBIT fee. Consequently, Grayscale gradually lost its appeal among investors who favored IBIT’s lower fees.
HODL15Capital commented that Grayscale owned 620,000 BTC during the conversion on January 10, 2024, which represented over 3% of the circulating supply. Despite investor withdrawals of over 330,000 BTC, Grayscale did not reduce its fee (1.5% compared to 0.2% for competitors). This contradicted their claimed “differentiated” strategy.
Meanwhile, buying activity for IBIT has increased recently due to bullish sentiment for Bitcoin and the broader crypto market. This momentum was further bolstered by the approval of ether (ETH) ETFs and renewed support for crypto among U.S. political parties.
This resulted in a sudden shift for IBIT, which had recorded low or zero inflows prior to May 15 and experienced its first-ever day of outflows in April, contributing to bearish sentiment.
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