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BlackRock’s IBIT upends Grayscale’s GBTC and leads spot Bitcoin ETFs in the US
BlackRock’s IBIT has overtaken Grayscale’s GBTC to become the largest spot bitcoin ETF in the United States
The latest twist comes after BlackRock’s bitcoin exchange-traded fund (ETF) reported an inflow of $102 million on Tuesday.
IBIT now holds nearly $20 billion in bitcoin, as reported on its product page Wednesday morning. On the contrary, GBTC is holding up $19.7 billion after recording outflows of $105 million on the same day.
On May 28th 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 more than $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 a significant milestone in crypto-financial products.
Grayscale charged a 1.5% fee for the GBTC ETF, which is significantly higher than BlackRock’s IBIT. As a result, the grayscale gradually lost appeal among investors who preferred the lower rates offered by IBIT.
“Grayscale held 620,000 BTC at the time of the conversion (January 10, 2024), or more than 3% of the circulating supply, but refused to lower the fee (1.5% vs. 0.2% for peers), even after investors had withdrawn over 330,000 Bitcoins. This is for the ‘differentiated’ strategy,” HODL15Capital She said.
Meanwhile, buying activity for IBIT has increased recently due to bullish sentiment for Bitcoin and the broader cryptocurrency market. The momentum was further supported by the listing approval for ether (ETH) ETFs. and renewed support for cryptocurrencies among U.S. political parties.
This led to a sudden shift in IBIT, which recorded a low value or inflows equal to zero before May 15 and saw its first day of outflows in April, leading to bearish sentiment.