The BlackRock iShares Bitcoin Trust (IBIT) has surpassed the Grayscale Bitcoin Trust (GBTC) to become the world’s largest spot Bitcoin ETF by Assets Under Management (AUM).
BlackRock Inflows Surpasses Grayscale’s
BlackRock, the world’s largest asset manager, introduced IBIT with a clear strategy to tap into the increasing demand for Bitcoin exposure among institutional clients. By offering a regulated and transparent investment vehicle, BlackRock’s IBIT was positioned as a preferred choice for investors seeking to gain exposure to BTC without directly holding the cryptocurrency.
According to a post on X, BlackRock IBIT recorded $102.5 million in inflows on May 28 compared to GBTC which recorded $105 million in outflows. Notably, BlackRock’s inflows brought its total Bitcoin to about 288,670 BTC, while Grayscale now holds 287,450 Bitcoin.
Bitcoin ETF Flow (US$ million) – 2024-05-28
TOTAL NET FLOW: 45
(Provisional data)
IBIT: 102.5
FBTC: 34.3
BITB: 3.3
ARKB: 4.1
BTCO: 3.4
EZBC: 0
BRRR: 1.2
HODL: 0
BTCW: 1.4
GBTC: -105.2
DEFI: 0
For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) May 29, 2024
A Bloomberg report also revealed that IBIT holds $19.68 billion worth of Bitcoin, Grayscale GBTC holds $19.65 billion, and Fidelity’s ETF offering has $11.1 billion worth of BTC. It is worth noting that since the approval of the 11 spot Bitcoin ETF products in January, BlackRock has recorded the largest inflows.
Meanwhile, Grayscale’s woes were hinged on its sponsor fees which unlike its peers come in at 1.5%. The company’s executives justified this huge fee with talks about the legacy of GBTC and its experience in administering profitable ETFs over the years.
Investments in Spot Bitcoin ETF Grows
Interest in this new asset class is growing as some companies spread their investments across various spot Bitcoin ETFs. The increasing presence of corporate entities in the Bitcoin ETF sector supports the idea that mainstream institutions are warming up to cryptocurrencies as an asset class.
As reported by Crypto-Vanguard, JPMorgan recently revealed its Bitcoin ETF holding, a meager $1.2 million, with shares from top issuers including BlackRock, Fidelity Investments, Grayscale, and Bitwise.
Similarly, the Canadian major financial institution, Bank of Montreal also unveiled its exposure to Spot Bitcoin ETF products in the US. As corporate giants continue to enter the market, their investment decisions will likely shape the trajectory of Bitcoin ETFs and influence broader market sentiment.
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