BlackRock’s IBIT Becomes Top Spot Bitcoin ETF, Surpassing Grayscale’s GBTC

Bitcoin exchange-traded funds (ETFs) has witnessed a shift as BlackRock’s iShares Bitcoin Trust (IBIT) overtook Grayscale’s Bitcoin Trust (GBTC) to become the largest spot Bitcoin ETF. This milestone occurred on May 28, 2024, when IBIT recorded inflows of over $102 million, while GBTC experienced an outflow of $105 million.

TLDR

BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed Grayscale’s Bitcoin Trust (GBTC) as the world’s largest spot Bitcoin ETF.
IBIT recorded inflows of over $102 million on May 28, while GBTC saw an outflow of $105 million.
IBIT now holds 288,670 Bitcoin worth $19.68 billion, compared to GBTC’s 287,450 Bitcoin worth $19.65 billion.
BlackRock has also added IBIT shares to its Strategic Income Opportunities Fund and Strategic Global Bond Fund.
Spot Bitcoin ETFs globally now hold over one million Bitcoin, equating to nearly 5.10% of the circulating supply.

As of the end of trading on that day, IBIT held 288,670 Bitcoin, valued at approximately $19.68 billion. In comparison, GBTC now holds 287,450 Bitcoin, worth around $19.65 billion.

✅ Ladies & Gentlemen!! The Bitcoin ETF flippening ????@BlackRock ‘s Bitcoin ETF, $IBIT overtook @Grayscale ‘s $GBTC pic.twitter.com/EJI0aAPim9

— HODL15Capital ???????? (@HODL15Capital) May 29, 2024

This shift in dominance is particularly noteworthy considering that GBTC started with 620,000 Bitcoin at the time of its conversion in January.

BlackRock’s success can be attributed to its lower fees compared to Grayscale. While GBTC charges a 1.5% fee, IBIT offers a more competitive 0.25% fee, making it more attractive to investors.

This difference in fees has led to a significant outflow of investors from GBTC, favoring BlackRock’s offering.

The growing interest in Bitcoin ETFs is not limited to IBIT. Recent regulatory filings reveal that BlackRock has also added IBIT shares to its Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX). BSIIX purchased $3.56 million worth of IBIT shares, while MAWIX bought $485,000 worth of shares.

The impact of spot Bitcoin ETFs on the overall Bitcoin market is substantial.

Globally, these ETFs now hold over one million Bitcoin, accounting for nearly 5.10% of the total circulating supply. This significant holding demonstrates the increasing institutional interest in Bitcoin and the growing acceptance of ETFs as a means of investing in the cryptocurrency.

Looking ahead, the market is eagerly anticipating the launch of spot Ether ETFs, which analysts believe could happen as early as mid-June.

These ETFs are currently undergoing the S-1 approval process, the final hurdle before they can begin trading on their respective stock exchanges.