BlackRock’s ETF Surpasses Grayscale: What’s Next for Bitcoin (BTC)?

  • BlackRock’s $20 Billion Bitcoin ETF has overtaken Grayscale Bitcoin Trust to become the largest Bitcoin fund.
  • The introduction of U.S. ETFs has made Bitcoin more accessible to investors.
  • “BlackRock’s iShares Bitcoin Trust has amassed nearly $20 billion in assets since its inception, surpassing Grayscale Bitcoin Trust,” according to Bloomberg.

BlackRock’s $20 Billion Bitcoin ETF Surpasses Grayscale as the Largest Bitcoin Fund

BlackRock’s $20 Billion ETF Now the World’s Largest Bitcoin Fund

BlackRock Inc.’s iShares Bitcoin Trust has become the largest Bitcoin fund, amassing nearly $20 billion in assets since its listing in the U.S. at the beginning of the year. According to Bloomberg data, the ETF held $19.68 billion worth of tokens as of Tuesday, surpassing the $19.65 billion held by the Grayscale Bitcoin Trust.

Impact of New Bitcoin ETFs on the Market

The launch of BlackRock and Fidelity Bitcoin ETFs marked a significant milestone for the cryptocurrency market. These ETFs were among nine introduced on January 11th, the same day the decade-old Grayscale vehicle converted into an ETF. This development has made Bitcoin more accessible to investors, contributing to the cryptocurrency reaching record highs of $73,798 by March.

Investor Movements and Fund Flows

Since its inception, the iShares Bitcoin Trust has attracted the largest inflow, with $16.5 billion in assets. In contrast, investors have withdrawn $17.7 billion from the Grayscale fund during the same period. Higher fees and arbitrage opportunities are cited as potential reasons for these outflows. Neither BlackRock nor Grayscale Investments LLC responded to requests for comments outside U.S. business hours.

Future Prospects and Regulatory Landscape

According to a source familiar with the matter, Grayscale plans to launch a clone of its main fund with lower fees, as indicated in a regulatory filing made in March. The U.S. Securities and Exchange Commission (SEC) reluctantly approved the first U.S. spot-Bitcoin ETFs in January, following a court reversal in a lawsuit filed by Grayscale in 2023.

Conclusion

BlackRock’s iShares Bitcoin Trust has quickly risen to become the largest Bitcoin fund, highlighting the growing acceptance and accessibility of Bitcoin ETFs. As the regulatory landscape continues to evolve, investors will be keenly watching for further developments that could impact the cryptocurrency market.

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