BlackRock’s Bitcoin ETF Surpasses Grayscale’s GBTC to Become the Largest Spot Bitcoin Product
BlackRock’s iShares Bitcoin Trust has taken the lead as the world’s largest fund for Bitcoin, accumulating nearly $20 billion in total assets since its listing in the United States earlier this year.
According to data compiled by HODL15Capital, the exchange-traded fund held $19.68 billion worth of Bitcoin on Tuesday, surpassing Grayscale Bitcoin Trust’s $19.65 billion.
Fidelity Investments holds the third-largest spot with an $11.1 billion offering.
The launch of BlackRock’s Bitcoin ETF, along with Fidelity’s, was part of a group of nine funds that debuted on January 11, coinciding with Grayscale’s conversion into an ETF.
The approval of spot Bitcoin ETFs marked a significant milestone for the crypto industry, making Bitcoin more accessible to investors and sparking a rally that saw the token reach a record high of $73,798 by March.
Since its launch, the iShares Bitcoin Trust has attracted the highest inflow, totaling $16.5 billion, while investors have withdrawn $17.7 billion from the Grayscale fund during the same period.
Possible factors contributing to the outflows from Grayscale include higher fees and exits by arbitragers.
Grayscale held 620,000 BTC at the time of the conversion (1/10/2024), 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. So much for the "differentiated" strategy.
— HODL15Capital
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