Tech
BlackRock’s IBIT surpasses Grayscale’s GBTC to become the largest Bitcoin fund
BlackRock’s spot Bitcoin ETF, IBIT, did ascended tops as the most significant Bitcoin fund, surpassing Grayscale’s long-dominant GBTC.
IBIT reached this significant level on Tuesday, May 28, after recording over $100 million in inflows. Meanwhile, Bitcoin has slipped past the $70,000 mark and appears stuck around the $68,000 region, down 3% over the past seven days.
Rapid growth of BlackRock’s IBIT
Since its launch just four months ago, BlackRock’s BTC spot ETF, under the symbol $IBIT, has seen notable growth. The ETF has amassed nearly $19.79 billion in assets, demonstrating significant investor interest and confidence.
In contrast, Grayscale’s Bitcoin Trust (GBTC), a pioneer in the Bitcoin ETF space, saw a notable decline. Over the same four-month period, GBTC’s assets under management shrank by about $18 billion, bringing its total to $19.75 billion.
On May 28, the Bitcoin ETF market saw significant activity with total net inflows of 632 BTC, equivalent to $43.3 million. This marked the 11th consecutive day of positive net inflows for Bitcoin ETFs, reflecting sustained interest in these financial products.
BlackRock led these inflows by adding 1,505 Bitcoin (worth $102 million) to its holdings, outpacing Grayscale. Fidelity also saw notable inflows, adding 505 BTC (worth $34 million), while Grayscale faced net outflows of 1,550 BTC (worth $105 million).
Additionally, to strengthen its investment offering, BlackRock also integrated nearly $4.1 million of IBIT shares into two other funds.
According to a recent SEC archiving, BlackRock added $3.56 million of IBIT shares to its BlackRock Strategic Income Opportunities Portfolio (BSIIX). Around the same time, he declared $486,000 worth of IBIT shares to his BlackRock Strategic Global Bond Fund (MAWIX).
Market implications and dominance of Bitcoin ETFs
The rise of BlackRock’s IBIT as the most significant Bitcoin fund signifies a fundamental shift in the broader cryptocurrency investment industry. It highlights the growing institutional acceptance of Bitcoin and the growing preference for regulated investment products.
BlackRock’s success reflects the competitive nature of the market, where innovation and investor confidence are crucial to determining market leadership.
Meanwhile, institutional investors have significantly boosted BTC ETFs, which now control around 5% of Bitcoin’s total supply.
This was reported by the blockchain analysis platform Dune in the United States Spot ETF on BTC they collectively hold approximately 842,000 BTC, roughly valued $57.4 billion. This represents 4.27% of the current circulating Bitcoin supply.
On a global scale, BTC ETF issuers own approximately 1,002,343 BTC. Michael Saylor, co-founder and former CEO of MicroStrategy, highlighted this figure in a screenshot shared on X (formerly Twitter).
Meanwhile, BTC is trading between $67,000 and $70,000, albeit mostly below the critical $70,000 resistance level.
Michael van de Poppe states that this range is significant for predicting the short-term price behavior of Bitcoin. He highlights the importance of the $67,000 support level and warns that if Bitcoin breaks below this threshold, it could fall between $60,000 and $62,000.
However, he also highlighted that such a decline could create attractive buying opportunities for investors looking to enter the market or increase their holdings.
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