BlackRock’s IBIT has outpaced Grayscale’s GBTC to become the largest spot bitcoin ETF in the United States. This shift occurred after BlackRock’s spot bitcoin exchange-traded fund (ETF) received a $102 million inflow on Tuesday. IBIT now holds close to $20 billion in bitcoin, as indicated on its product page on Wednesday morning. In contrast, GBTC holds $19.7 billion after experiencing $105 million in outflows on the same day.
On May 28, BlackRock included the bitcoin ETF in its income and bond-focused funds during the first quarter. The firm’s Strategic Income Opportunities Fund (BSIIX) holds more than $3.5 million worth of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000. This development, almost five months after the approval of spot Bitcoin ETFs, represents a significant milestone in crypto-financial products.
Grayscale charged a 1.5% fee for the GBTC ETF, which is significantly higher than BlackRock’s IBIT. Consequently, Grayscale lost appeal among investors who favored the lower fees offered by IBIT.
Recently, there has been increased buying activity for IBIT due to bullish sentiment for Bitcoin and the wider crypto market. This momentum was further bolstered by the approval for ether (ETH) ETFs and renewed support for crypto among U.S. political parties.
This sudden shift in IBIT, which previously had low or zero inflows before May 15 and experienced its first day of outflows in April, indicates a change in sentiment towards the ETF.