BlackRock’s Bitcoin ETF Surpasses Grayscale to Become World’s Largest
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In a major milestone for the crypto industry, BlackRock’s iShares Bitcoin Trust (IBIT) ETF has become the biggest bitcoin fund in the world. The exchange-traded fund (ETF) now manages nearly $20 billion worth of the digital currency, according to a report from Bloomberg News.
BlackRock’s bitcoin ETF has seen massive inflows since it launched on U.S. exchanges in January. In less than five months, the fund’s assets have skyrocketed to $19.68 billion, slightly edging out the previous market leader, the Grayscale Bitcoin Trust (GBTC).
Grayscale’s Trust, which recently converted into an ETF, held $19.65 billion as of Tuesday.
The rapid rise of BlackRock’s Bitcoin ETF marks a big shift in the Bitcoin investment landscape. When the first bitcoin ETFs began trading earlier this year, Grayscale’s Trust dominated the space with around $29 billion in assets. But steady outflows, higher fees, and strong competition from big players like BlackRock have chipped away at its lead.
Robust Network of Financial Players Fueling BlackRock’s Bitcoin ETF Surge
Experts say BlackRock’s wide distribution network with financial advisors and wealth managers has helped fuel the ETF’s growth. “We’re seeing significant assets moving into the ETF from the wealth community,” said Jay Jacobs, BlackRock’s U.S. head of thematic and active ETFs, in an interview with Reuters. Some advisors have moved accounts worth millions of dollars from direct Bitcoin ownership into the ETF.
The changing of the guard also shows that being first doesn’t always mean being the biggest winner in the long run, noted Aniket Ullal, head of ETF data and analytics at CFRA. While Grayscale pioneered publicly traded bitcoin funds, its higher 1.5% fee put it at a disadvantage to lower-cost ETFs charging around 0.25% on average.
Still, most large institutions remain on the sidelines when it comes to bitcoin ETFs. Gaining their trust and investment could be a gradual process taking years, Jacobs acknowledged. But the early success of funds like IBIT suggests that mainstream crypto adoption is steadily gaining ground.
As more investors look for regulated, transparent ways to bet on Bitcoin, the battle to be the top ETF is only beginning.
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