BlackRock’s $20 billion IBIT becomes world’s largest Bitcoin ETF
iShares Bitcoin Trust (IBIT), Blackrock’s spot Bitcoin exchange-traded fund (ETF), has surpassed Grayscale’s Bitcoin Trust (GBTC) to become the world’s largest Bitcoin ETF. .
As of May 28, IBIT trusts 288,670 bitcoins and holds over $20 billion in assets. This surpasses GBTC’s $19.7 billion in assets and 287,450 Bitcoin holdings.
JUST IN: BlackRock’s Seat #Bitcoin ETF $ goes It surpassed GBTC to become the world’s largest Bitcoin ETF. pic.twitter.com/b9hgfZLmY7
— Bitcoin Magazine (@BitcoinMagazine) May 29, 2024
This turn of fortune comes amid a flood of SEC-approved Bitcoin ETFs hitting the market, just months after both ETFs launched on the same day in January. While GBTC is pulling out funds, IBIT has seen steady inflows and is now the dominant player.
Grayscale has seen outflows accelerate as investors turn to BlackRock’s ETFs and other spot Bitcoin products due to high fees. On Tuesday alone, GBTC suffered a loss of $105 million while IBIT made a profit of more than $100 million.
IBIT’s gains also pushed it past the $11 billion Fidelity Bitcoin ETF for the top spot. Assets quickly rose to over $20 billion, making it one of the fastest-growing ETFs of all time.
BlackRock will add IBITs to its Strategic Income and Strategic Global Bond funds this week, further validating institutional demand. The asset manager currently holds shares of the Bitcoin ETF across several major funds.
As Bitcoin adoption becomes mainstream, asset managers like BlackRock are positioning themselves to meet surging institutional demand. The SEC’s approval of Bitcoin ETF makes it easier for banks, hedge funds, etc. to enter.
The fact that BlackRock has become the largest Bitcoin ETF issuer indicates the growing acceptance of Bitcoin in legacy finance. Older businesses are increasingly recognizing the value of providing customers with access to digital asset exposure.
