GBTC to take the helm in spearheading Bitcoin ETFs in the United States
BlackRock’s IBIT Surpasses Grayscale’s GBTC to Become Largest Bitcoin ETF in the US
In a significant development, BlackRock’s spot bitcoin exchange-traded fund (ETF) has overtaken Grayscale’s GBTC to become the largest spot bitcoin ETF in the United States. This shift occurred after BlackRock’s ETF saw a substantial $102 million inflow on Tuesday.
As of Wednesday morning, IBIT now holds nearly $20 billion worth of bitcoin, according to its product page. In contrast, GBTC holds $19.7 billion after experiencing $105 million in outflows on the same day.
BlackRock incorporated the bitcoin ETF into its income and bond-focused funds during the first quarter, specifically in its Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX). BSIIX holds over $3.5 million worth of IBIT, while MAWIX holds $485,000.
This milestone comes nearly five months after the approval of spot bitcoin ETFs and is a significant achievement for crypto-financial products.
One of the factors contributing to the shift is Grayscale’s 1.5% fee for the GBTC ETF, which is considerably higher compared to BlackRock’s IBIT. This higher fee led to a loss of appeal among investors who preferred the lower fees offered by IBIT.
Grayscale’s refusal to lower the fee, even after investors withdrew more than 330,000 BTC, caused further dissatisfaction among investors. HODL15Capital criticized Grayscale’s strategy, stating, “So much for the ‘differentiated’ strategy.”
On the other hand, buying activity for IBIT has increased recently due to bullish sentiment for Bitcoin and the broader crypto market. This momentum has been further supported by the approval of ether (ETH) ETFs and renewed support for crypto from U.S. political parties.
This sudden shift in IBIT’s fortunes is notable, considering it recorded low or zero inflows before May 15 and experienced its first-ever day of outflows in April, which led to bearish sentiment.
In related news, Wells Fargo has invested in Grayscale’s spot Bitcoin ETF.
