BlackRock's IBIT Overtakes Grayscale as Largest Bitcoin Fund

BlackRock’s iShares Bitcoin Trust (IBIT) has become the largest Bitcoin exchange-traded fund (ETF) globally, surpassing the Grayscale Bitcoin Trust (GBTC) according to the latest publicly available data.

According to the Apollo Bitcoin Tracker, BlackRock’s spot Bitcoin ETF has shown impressive growth, amassing 288,670 BTC, surpassing Grayscale’s holdings of 287,450 BTC.

A May 29 Bloomberg report, referencing its own data, revealed that BlackRock’s fund now holds $19.68 billion in Bitcoin, slightly more than Grayscale’s $19.65 billion. Fidelity’s Bitcoin ETF lags behind with $11.1 billion.

Both ETFs were launched in January 2024. It’s worth noting that Grayscale’s ETF held 620,000 BTC, which was more than 3% of the cryptocurrency’s circulating supply at that time. The fund was converted from an already successful Trust Fund to a spot ETF. However, the fund has been experiencing consistent daily significant outflows from its portfolio since then.

Blackrock’s ETF, on the other hand, has had the opposite experience. It has been the best-performing fund since its launch and has captured the majority of inflows among all 11 spot Bitcoin ETFs launched at the time.

The prevailing hypothesis for the significant outflow from the Grayscale fund has been its high premium trading fees. It maintained its initial 1.5% commission, while its peers launched with only 0.2%.

As of May 28, iBIT recorded an inflow of $102.5 million, while GBTC experienced an outflow of $105 million.

According to regulatory filings from the first quarter of 2024, BlackRock’s income and bond-focused funds are investing in its Bitcoin ETF. The Strategic Income Opportunities Fund (BSIIX) acquired $3.56 million of IBIT shares, and the Strategic Global Bond Fund (MAWIX) purchased $485,000 worth, as indicated in the May 28 Securities and Exchange Commission filings.

Spot Bitcoin ETFs worldwide now collectively hold over one million BTC, valued at more than $68 billion, which represents nearly 5.10% of the total Bitcoin supply.

Bitcoin’s price increased by 1.1% on May 28, reaching $68,550, as per CoinMarketCap data. Its current trading price is around $67,795, according to the same source.

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