Key Takeaways
- BlackRock’s iShares Bitcoin Trust (IBIT) surpasses Grayscale Bitcoin Trust (GBTC) as the top spot Bitcoin ETF.
- Grayscale’s higher 1.5% fee led to significant investor pullout, favoring BlackRock’s 0.25% fee IBIT.
- Total Bitcoin held by ETFs exceeds 1 million BTC, with the US leading $1.03 billion weekly inflows.
In a notable shift in the market, BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken Grayscale Bitcoin Trust (GBTC) to become the world’s largest spot Bitcoin exchange-traded fund (ETF).
Recent data from SoSoValue shows that IBIT now holds $19.68 billion in Bitcoin (BTC), slightly surpassing GBTC’s $19.65 billion.
This milestone, achieved 96 trading days after the approval of spot Bitcoin ETFs, marks a significant era for financial products based on Bitcoin.
Grayscale’s higher 1.5% fee for its GBTC ETF led to a significant investor exodus, favoring BlackRock’s IBIT with a lower 0.25% fee.
HODL15Capital commented:
Grayscale held 620,000 BTC at the time of the conversion (January 10, 2024), which was more than 3% of circulating supply, but refused to lower the fee (1.5% vs 0.2% for peers), even after investors pulled 330,000+ BTC.
GBTC experienced its largest single-day outflow in 18 trading days, totaling $105 million.
In contrast, the overall Bitcoin ETF sector saw a net inflow of $45.14 million on May 28, 2024, extending an 11-day streak of net inflows across 11 US Bitcoin ETFs.
BlackRock leveraged its income and bond-focused funds to invest in IBIT.
The BlackRock Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX) purchased shares worth $3.56 million and $485,000, respectively.
Despite these significant purchases, they represent only a fraction of their respective portfolios.
The total Bitcoin held by ETFs now exceeds 1 million BTC, nearly 5% of the total Bitcoin supply.
The US leads with $1.03 billion in weekly inflows, followed by significant inflows from Germany and Switzerland.
CoinShares data reflects a positive market sentiment with digital asset investment products recording $1.05 billion in inflows over three consecutive weeks, pushing the total value of digital asset ETPs close to $98.5 billion.
