BlackRock’s spot Bitcoin ETF, IBIT, has overtaken Grayscale’s GBTC as the leading Bitcoin investment vehicle. This “flippening” occurred on May 28th, fueled by over $100 million in inflows for IBIT.
IBIT’s Meteoric Rise
Launched just four months ago, IBIT has garnered a staggering Asset Under Management (AUM) of nearly $19.8 billion. This impressive growth coincides with a decline in Grayscale’s GBTC AUM, which currently sits at $19.75 billion. Several factors contribute to IBIT’s success:
- Investor Preference: IBIT offers a structure more favorable to investors compared to GBTC’s high fees.
- Trading Activity: IBIT boasts the highest trading volume among Bitcoin ETFs, signifying greater liquidity.
The surge in IBIT’s popularity reflects a broader trend of institutional interest in Bitcoin. The past eleven days have seen continuous inflows into Bitcoin ETFs, with a total of 632 BTC (around $43.3 million) added on May 28th alone. BlackRock led this charge, acquiring 1,505 BTC ($102 million), followed by Fidelity’s addition of 505 BTC ($34 million). Grayscale, conversely, experienced net outflows of 1,550 BTC ($105 million).
BlackRock Doubles Down on Bitcoin
Demonstrating strong internal confidence in Bitcoin, BlackRock allocated a portion of its IBIT shares to two of its own funds: the BlackRock Strategic Income Opportunities Portfolio (BSIIX) and the BlackRock Strategic Global Bond Fund (MAWIX). This move highlights BlackRock’s belief in Bitcoin’s long-term potential.
The combined might of Bitcoin ETFs is starting to shape the cryptocurrency market. Collectively, these funds hold an estimated 4.27% of the total Bitcoin supply, translating to roughly 842,000 BTC valued at $57.2 billion. Including global ETF holdings, this figure climbs to over 1 million BTC, as noted by MicroStrategy co-founder Michael Saylor.
Bitcoin Price Poised for a Breakout?
While the Bitcoin price remains shy of the $70,000 resistance level, recent on-chain data suggests a potential bullish trend on the horizon. With institutional support solidifying through vehicles like IBIT, the future of Bitcoin appears increasingly bright.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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