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BlackRock Takes the Crown for the Largest Spot Bitcoin ETF From Grayscale

May 28, 2024
    BlackRock’s IBIT has surpassed Grayscale’s GBTC, becoming the largest spot bitcoin ETF in the U.S.The investment giant added IBIT to its income and bond-focused funds on Tuesday.
As a researcher with a background in finance and experience following the cryptocurrency market closely, I’m excited to share my perspective on BlackRock’s recent move to make its spot bitcoin ETF (IBIT) the largest product of its kind in the U.S., surpassing Grayscale’s GBTC.The BlackRock BTC ETF has surpassed Grayscale’s GBTC as the largest Bitcoin exchange-traded fund (ETF) following a $102 million investment influx on Tuesday.
As a crypto investor, I’d interpret it this way: IBIT currently controls approximately $20 billion worth of bitcoin according to their product page, updated as of Wednesday morning. On the other hand, GBTC now manages around $19.7 billion in bitcoin following outflows totaling $105 million, as indicated on their website from Tuesday.

On Tuesday, BlackRock incorporated a bitcoin Exchange-Traded Fund (ETF) into its income and bond-oriented funds during the first quarter. Specifically, the Strategic Income Opportunities Fund (BSIIX) owns over $3.5 million in this ETF, while the Strategic Global Bond Fund (MAWIX) holds approximately $485,000 worth.

As a researcher studying the digital currency market, I’ve noticed an uptick in purchasing activity for Institutional Bitcoin Investment Trust (IBIT) recently. This surge can be attributed to the optimistic outlook towards bitcoin and the wider crypto sector. The bullish momentum gained traction following the approval of Ethereum (ETH) Exchange-Traded Funds (ETFs), as well as renewed backing for cryptocurrencies from key U.S. political figures.

The unexpected increase in IBIT contributed significantly to a notable turnaround, as it previously experienced little to no inflows prior to May 15 and recorded its inaugural day of outflows in April. This development instilled pessimistic feelings among investors.

Last week, the bitcoin ETFs traded on U.S. exchanges broke their preceding record by holding over 850,000 Bitcoin in their trusts, outpacing the earlier high of approximately 845,000 Bitcoin from early April.

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2024-05-29 10:35