BlackRock's spot bitcoin exchange-traded fund (ETF), iShares bitcoin Trust (IBIT), has overtaken Grayscale's bitcoin Trust (GBTC) as the world's largest bitcoin ETF.
As of May 28, IBIT holds over $20 billion in assets with 288,670 bitcoin in its trust. This exceeds GBTC's $19.7 billion in assets and 287,450 bitcoin holdings.
<blockquote class="twitter-tweet”>
ONLY IN: BlackRock Spot twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETFs twitter.com/search?q=%24IBIT&src=ctag&ref_src=twsrc%5Etfw”>$ VA Overtakes GBTC to Become World's Largest bitcoin ETF. pic.twitter.com/b9hgfZLmY7
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1795644875104571607?ref_src=twsrc%5Etfw”>May 29, 2024
The change in fortunes comes just months after both ETFs launched on the same day in January amid a wave of SEC-approved bitcoin ETFs hitting the market. While GBTC bled funds, IBIT recorded steady inflows that now make it the dominant player.
Grayscale has seen an acceleration in outflows as investors flock to the BlackRock ETF and other spot bitcoin products due to their high fees. On Tuesday alone, GBTC recorded an outflow of $105 million, while IBIT gained over $100 million.
The IBIT rise also surpasses the $11 billion Fidelity bitcoin ETF for the top spot. Its rapid rise to more than $20 billion in assets also makes it one of the fastest-growing ETFs in history.
BlackRock will add IBIT to its Strategic Income and Strategic Global Bond funds this week, further validating institutional demand. The asset manager now owns shares of its bitcoin ETF in several major funds.
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With widespread adoption of bitcoin, asset managers like BlackRock are positioning themselves to meet growing institutional demand. The SEC's approval of bitcoin ETFs has provided an easy avenue of entry for banks, hedge funds, and more.
BlackRock's rise to become the largest bitcoin ETF issuer indicates the growing acceptance of bitcoin by legacy finance. Old guard companies increasingly see the value in offering clients access to digital asset exposure.
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