Blackrock's IBIT Overtaken Grayscale's GBTC As Largest Bitcoin ETF

On top of this, U.S. President Joe Biden vetoed a crypto bill that passed both houses of Congress and a Japanese crypto exchange was hacked for more than $300 million worth of bitcoin. Meanwhile, Keith Gill, the man behind the meme-stock frenzy in 2021, fueled a rally in some meme coins with his latest bet.

Since 11 Jan when the Spot Bitcoin STF began trading, and after slightly more than four months, we saw

A little over four months since it began trading on Jan. 11, BlackRock's bitcoin ETF became the largest spot bitcoin ETF by assets, passing Grayscale's GBTC for the top spot. At the end of May, IBIT's assets stood at $19.5 billion while GBTC's were $19.385 billion.

GBTC is the oldest fund, with bitcoin investments that converted to an ETF when the U.S. Securities and Exchange Commission allowed spot bitcoin ETFs earlier this year. At that time, GBTC's assets surpassed $24 billion.

But as soon as other comparable products (e.g. IBIT) began trading, investors pulled large sums of money out of GBTC, resulting in roughly $17.9 billion in net outflows since 11 Jan. In sharp contrast, BlackRock’s IBIT has reported substantial inflows, pulling in about $16.6 billion this year.

Now we can see that IBIT is slightly above GBTC in terms of Spot Bitcoin ETF AUM.

If we were to look at the disparity in fees between Grayscale's ETF and other bitcoin ETFs from Blackrock, Fidelity, and others has played a crucial role in the competition that Grayscale's fund has faced.

For example, GBTC charges a 1.5% fee, while IBIT comes with a 0.25% fee.1 Notably, Grayscale plans to soon launch an alternative spot bitcoin ETF offering with lower fees under the BTC ticker.

And not forgetting how the funds flows have been moving over the past month, we could see that GBTC has more outflow and IBIT have gained the upper hand on the inflows.

So if you are not yet invested in IBIT, you might want to consider taking a position.

I personally have invested in IBIT in another vehicle and hence, I am considering whether to increase the holdings. If we consider how Bitcoin prices have moved because of inflows, the amount of fund inflows gathered by IBIT has been considerable important for the crypto asset to move.

Appreciate if you could share your thoughts in the comment section whether you think IBIT inflows would continue to grow?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.