BlackRock’s IBIT has emerged as the largest spot bitcoin ETF in the U.S., surpassing Grayscale’s GBTC following a significant $102 million inflow on Tuesday. As of Wednesday morning, IBIT holds nearly $20 billion worth of bitcoin, while GBTC holds $19.7 billion after experiencing $105 million in outflows on the same day.
This shift marks a notable development in the crypto-financial landscape, occurring nearly five months after the approval of spot Bitcoin ETFs. BlackRock has incorporated the bitcoin ETF into its income and bond-focused funds since the first quarter, with its Strategic Income Opportunities Fund (BSIIX) holding over $3.5 million worth of IBIT, and its Strategic Global Bond Fund (MAWIX) holding $485,000.
Grayscale’s GBTC has historically charged a higher fee of 1.5%, compared to BlackRock’s lower fee structure for IBIT. This pricing difference has led to a gradual decline in investor interest for GBTC. At the time of conversion on January 10, 2024, Grayscale held 620,000 BTC, more than 3% of the circulating supply. Despite this, Grayscale did not reduce its fees, even as investors pulled over 330,000 BTC.
Investor sentiment towards IBIT has been bullish recently, driven by favorable market conditions and renewed political support for crypto. This positive sentiment, combined with the listing approval for ether (ETH) ETFs, has significantly increased buying activity for IBIT, reversing previous periods of low or zero inflows and even outflows recorded in April.
