- BlackRock’s IBIT has overturned GBTC as the number one BTC ETF
- IBIT could see Gold ETF as the next target.
BlackRocks Bitcoin [BTC] ETF, iShares Bitcoin Trust (IBIT), has turned Grayscale’s GBTC into the world’s largest BTC ETF, with $20 billion in assets.
From May 29, I BIT owned 288.67K BTC, which translates to approximately $19.5 billion based on the current market value of $67.7K per BTC.
On the other hand, Grayscale’s BTC position stood at 287.44K as of May 29, according to the company’s figures. website.
According to one of the market observers, the turnaround took place after GBTC recorded an additional outflow worth $105.2 million on May 28 compared to IBIT’s inflow of $102.5 million.
BlackRock Bitcoin ETF Spikes Following Massive GBTC Outflows
Since the GBTC conversion in January, Grayscale has lost 300,000 BTC due to high outflow as the company maintained higher compensation compared to new entrants.
“Grayscale owned 620,000 BTC at the time of the conversion (1/10/2024), which was more than 3% of the circulating supply, but refused to reduce the fee (1.5% vs. 0.2% for similar companies) , even after investors raised 330,000 BTC. +BTC. So much for the ‘differentiated’ strategy.”
Source: Coinglass
According to Farside Investors factsGBTC’s record cumulative negative flows were $17.7 billion as of May 29. On the other hand, the BlackRock Bitcoin ETF has seen notable net positive flows worth $16.5 billion over the same period.
Apparently, IBIT’s nearly $20 billion in assets was also a notable record in traditional ETFs, according to Bloomberg ETF analyst Eric Balchunas. Balchunas noted That,
“More context on how absurd $IBIT is: There has only been one ETF in history that reached $20 billion in assets in less than 1,000 days. $JEPI, who did it in 985 days. $IBIT is a hair away after 137 days”
According to Nate Geracci from ETF Store, the next target for IBIT could be the iShares Gold ETF, which has more than $29 billion in assets.
“It would be something if IBIT caught it (iShares Gold ETF) before the end of the year.”
Meanwhile, general spot BTC ETFs traded positively flows last week, which could boost BTC’s price action.
However, at the time of writing, the King coin was facing near-term selling pressure of almost $67,000. The long-term projection still painted a bullish scenariogiven that the current rally may only be halfway through before the market reaches its peak.