BlackRock’s Dominance in Bitcoin ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) has now surpassed Grayscale’s Bitcoin Trust ETF (GBTC) in total Assets Under Management (AUM) for Spot Bitcoin Exchange Traded Funds (ETFs). This milestone reflects BlackRock’s growing influence in the ETF sector and its faith in crypto investments.
IBIT’s Massive Inflows
Since its launch in January, BlackRock’s Spot Bitcoin ETF has seen consistent inflows, exceeding $21.4 billion in AUM. This surge is attributed to the steady flow of funds into IBIT. Despite a few zero-inflow days, outflows have been minimal over the past five months.
Grayscale’s Outflows
In contrast to BlackRock, Grayscale has experienced more outflows than inflows since its ETF launch. As a result, GBTC has seen a total of $17.5 billion in outflows, contributing to BlackRock’s IBIT surpassing it.
Bitcoin Holdings and Fees
BlackRock’s Spot Bitcoin ETF currently holds over 302,536 BTC, representing over 1.4% of Bitcoin’s circulating supply. Grayscale, on the other hand, holds approximately 285,105 BTC.
The significant difference in ETF fees between IBIT (0.25% annual management fee) and GBTC (1.5% fee) has influenced GBTC’s outflows. Investors have been shifting assets to more cost-effective options like IBIT.
Recent Inflows
In the past four days, BlackRock’s Spot Bitcoin ETF has seen a surge in inflows, totaling $946 million. This has been driven by four consecutive days of inflows from June 4th to June 7th.
