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

BlackRock’s IBIT overtakes Grayscale’s GBTC to become the largest spot bitcoin ETF in the US

The latest change comes after BlackRock’s spot bitcoin exchange-traded fund (ETF) saw an inflow of $102 million on Tuesday.

IBIT currently holds approximately $20 billion worth of Bitcoin, as reported on its product page Wednesday morning. In contrast, GBTC retained $19.7 billion after experiencing an outflow of $105 million on the same day.

On May 28, BlackRock introduced the Bitcoin ETF into its income and bond-focused funds in the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) has $3.5 million worth of IBIT, while the Strategic Global Bond Fund (MAWIX) has $485,000.

This development, which comes approximately five months after the approval of spot Bitcoin ETFs, marks a significant turning point 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, Grayscale gradually lost its appeal among investors who preferred the lower fees offered by IBIT.

“Grayscale held 620,000 BTC at the time of conversion (January 10, 2024); this accounted for more than 3% of the circulating supply, but investors refused to reduce the fee even after withdrawing more than 330,000 BTC (0.2% versus 1.5% for their counterparts). BTC. So much for the ‘differentiated’ strategy,” HODL15Capital said.

Meanwhile, buying activity for IBIT has increased recently due to bullish sentiment towards Bitcoin and the broader crypto market. This momentum was further bolstered by the approval of the listing of Ethereum (ETH) ETFs and renewed support for crypto among political parties in the US.

This led to a sudden change in IBIT, which recorded low or zero inflows before May 15 and saw its first day of outflows in April, leading to a downward trend.