BlackRock’s spot Bitcoin Exchange Traded Fund, known as the iShares Bitcoin Trust, has overtaken Grayscale’s Bitcoin Trust to become the world’s largest Bitcoin ETF.
The United States Securities and Exchange Commission approved spot Bitcoin ETFs in early January, allowing both BlackRock and Grayscale to launch their products simultaneously.
According to Bitcoin Magazine, as of yesterday, BlackRock’s IBIT manages over $20 billion in assets, comprising 288,670 Bitcoin. In comparison, Grayscale’s GBTC holds over $19.7 billion in assets with 287,450 Bitcoin.
Since their January debut, BlackRock’s IBIT has experienced a consistent inflow of funds, bolstered by BlackRock’s reputation as a leading global financial institution and asset manager. Conversely, Grayscale’s GBTC has faced significant outflows, with investors attracted to alternative Bitcoin ETFs due to GBTC’s higher fees.
Yesterday alone, GBTC saw an outflow of $105 million, while BlackRock’s IBIT gained over $100 million. BlackRock’s rapid growth has also eclipsed Fidelity’s Bitcoin ETF, which currently stands at $11 billion, firmly establishing IBIT as the fastest-growing spot Bitcoin ETF on the market.
In response to the growing demand for cryptocurrency assets, BlackRock has updated the status of its Bitcoin investments by incorporating them into its Strategic Income and Strategic Global Bond funds.
The broader adoption of Bitcoin in the financial sector reflects the increasing interest from traditional financial institutions such as asset managers, banks, and hedge funds. The US SEC’s approval of spot Bitcoin ETFs, and more recently Ethereum ETFs, has paved the way for these institutions to offer clients exposure to digital assets.
Crypto ETFs allow investors to gain exposure to cryptocurrency price movements without directly owning the digital currency. These ETFs trade on stock exchanges and can be held in brokerage accounts, tracking the performance of one or more cryptocurrencies or related technologies.
As of January 2024, the SEC has approved 11 spot Bitcoin ETFs, including offerings from ARK 21Shares, Bitwise, BlackRock, Franklin, Fidelity, Grayscale, Hashdex, Invesco Galaxy, VanEck, Valkyrie, and WisdomTree.
