- The BlackRock Bitcoin ETF (IBIT) has officially become the largest Bitcoin fund with nearly $20 billion in assets under management (AUM).
- Grayscale’s GBTC saw a reduction of 1,500 BTC from its holdings, while BlackRock added the same amount.
- BlackRock has increased its IBIT share exposure to two other funds, indicating a strategic expansion.
BlackRock’s IBIT becomes the largest Bitcoin fund, surpassing Grayscale’s GBTC with nearly $20 billion in AUM.
BlackRock’s IBIT Overtakes Grayscale’s GBTC
In a significant development, BlackRock’s spot Bitcoin ETF, IBIT, has emerged as the largest Bitcoin fund in the market, overtaking Grayscale’s GBTC. This milestone was achieved on Tuesday, May 28, when the BlackRock Bitcoin ETF recorded over $100 million in inflows. Consequently, the Bitcoin price saw a 1% increase, moving past $68,700 levels.
BlackRock Holds Nearly $20 Billion Worth of Bitcoins
In just four months, BlackRock’s spot Bitcoin ETF (IBIT) has amassed an impressive AUM of nearly $19.79 billion. Meanwhile, Grayscale’s GBTC AUM has declined by approximately $18 billion during the same period, now standing at $19.75 billion. With this rapid growth and Grayscale’s net outflows, BlackRock has managed to surpass Grayscale as the world’s largest Bitcoin spot ETF by AUM.
On May 28, Bitcoin ETFs saw total net inflows of 632 BTC, equivalent to $43.3 million. It marked the eleventh consecutive day of Bitcoin ETF inflows. BlackRock led the way with an addition of 1,505 BTC ($102 million), surpassing Grayscale to become the largest Bitcoin ETF. Fidelity also saw an increase, adding 505 BTC ($34 million). In contrast, Grayscale experienced a net outflow of 1,550 BTC ($105 million).
In another interesting development, BlackRock also added nearly $4.1 million worth of IBIT shares to its two other funds. According to the SEC filing on Tuesday, BlackRock added $3.6 million of its IBIT shares to its BlackRock Strategic Income Opportunities Portfolio (BSIIX) and $486,000 worth of IBIT shares to its BlackRock Strategic Global Bond Fund (MAWIX).
ETFs Alone Control 5% of Total BTC Supply
Amid strong institutional support, Bitcoin ETF funds trading worldwide now cater to 5% of the total Bitcoin supply. Spot Bitcoin ETFs now hold nearly 5% of Bitcoin’s total supply of 21 million coins. According to data from the blockchain analytics platform Dune, U.S. Spot BTC ETFs collectively hold approximately 842,000 BTC, valued at around $57.2 billion. This accounts for 4.27% of the current BTC supply. Globally, BTC ETF issuers hold about 1,002,343 BTC, as shared in a screenshot on X (formerly Twitter) by MicroStrategy co-founder and former CEO, Michael Saylor.
The BTC price has been showing a mild upside move; however, it continues to trade under its crucial resistance of $70,000. Some of the BTC on-chain data hints at a bullish move going ahead.
Conclusion
BlackRock’s IBIT becoming the largest Bitcoin fund marks a significant shift in the crypto investment landscape. With nearly $20 billion in AUM, BlackRock’s strategic moves and institutional support have positioned it as a dominant player. As ETFs continue to control a significant portion of the BTC supply, the market may see further bullish trends, especially if Bitcoin can break through its current resistance levels.
