BlackRock's Bitcoin spot ETF, iShares Bitcoin Trust (IBIT), has surpassed Grayscale's Bitcoin Trust (GBTC) as the world's largest Bitcoin ETF.
As of May 28, IBIT has over $20 billion in assets with 288,670 BTC in its trust. This exceeds GBTC's $19.7 billion in assets and 287,450 Bitcoin holdings.
JUST IN: Black Rock Spot #Bitcoin European Training Foundation $ go It has overtaken GBTC to become the largest Bitcoin ETF in the world. pic.twitter.com/b9hgfZLmY7
– Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
The flip of 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 has drained its funds, IBIT has seen steady inflows that now make it the dominant player.
Grayscale saw accelerating outflows as investors turned to BlackRock ETFs and other spot bitcoin products due to their high fees. On Tuesday alone, GBTC saw an exit of $105 million, while IBIT gained more than $100 million.
IBIT's rise also beats out the $11 billion Fidelity Bitcoin ETF to take first place. Its meteoric rise to over $20 billion in assets also makes it one of the fastest-growing ETFs of all time.
BlackRock is adding IBIT to its Strategic Income and Global Bond Funds this week, further validating institutional demand. The asset manager now owns shares in the Bitcoin ETF across several major funds.
As Bitcoin adoption spreads, asset managers like BlackRock are positioning themselves to meet growing institutional demand. The SEC's approval of Bitcoin ETFs has provided an easy way for banks, hedge funds and others.
BlackRock's rise to become the issuer of the largest Bitcoin ETF indicates the growing acceptance of Bitcoin through legacy finance. Old guard companies increasingly see the value in giving customers access to digital assets.
