2024-12-26T09:13:16+0000

In a significant development in the crypto market, BlackRock's iShares Bitcoin Trust (IBIT) has surpassed Grayscale Bitcoin Trust (GBTC) to become the world's largest spot Bitcoin exchange-traded fund (ETF). Recent data shows that IBIT now holds $19.68 billion in Bitcoin, slightly more than GBTC's $19.65 billion. This milestone comes just five months after the approval of spot Bitcoin ETFs, marking a major shift in the crypto-financial landscape. Grayscale's higher 1.5% fee compared to IBIT's 0.2% contributed to its loss of appeal among investors. BlackRock has also leveraged its own income and bond-focused funds to invest in IBIT. The total holdings of Bitcoin by ETFs have now exceeded 1 million BTC, representing nearly 5% of the total Bitcoin supply. The US remains the focal point for Bitcoin inflows, reaching $1.03 billion last week. Despite recent volatility, the positive momentum of Bitcoin ETFs continues to fuel BTC's price action. The launch of these ETFs has transformed the market structure by providing institutions with easy and regulated entry points into crypto. As BlackRock solidifies its position as the world's largest institutional holder of Bitcoin, it highlights the growing institutional interest and the competitive dynamics within the ETF market.