BlackRock’s Bitcoin ETF is now the largest in the world. The change comes after IBIT had inflows of $102.5 million this Tuesday (28), while GBTC had outflows of $105.5 million, a trend that has continued since January when both were launched.
The total is now BlackRock ETF holds 288,670 bitcoinsevaluated in R$101 billion. On the other hand, Grayscale ETF is with 287,450 bitcoinsa minimal difference, but one that speaks volumes about the market.
This is because IBIT started from scratch and collected all these bitcoins in less than 5 months. GBTC entered the market with 605,891 bitcoins added over the past decade before the fund was converted into an ETF.
BlackRock is officially the largest Bitcoin ETF in the world
As investors locked into GBTC had a strong desire to get out of the market, Grayscale saw its ETF shrink by the day. This includes several failed giants that had exposure to the fund.
Another factor that has contributed to this is compensation competition. While grayscale is charging 1.5% per year from your customers, other 8 ETFs maintains rates between 0.19% to 0.3% and furthermore, some managers offered zero fees for first-time investors.
BlackRock, a manager that manages $9.1 trillion in assets, showed all the influence it has on the market, beyond the 0.25% fees.
To be one of the main investors in IBIT during the 1st quarter Millennium management, Schonfeld Strategic Advisors, Aristeia capital and other well-known names. In any case, these institutional investors represented only 19% of the inflow.
With eight consecutive days of inflows after a brief hiatus, BlackRock’s ETF has now become the largest in the world. In total, the manager manages 288,670 bitcoins, worth R$101 billion.
BlackRock is buying its own ETF
While managers like Ark Invest already bought their own ETF, in this case for $62.3 million, BlackRock is now following the same path.
This is because the Strategic Income Opportunity Fund (BSIIX)a BlackRock fund focused on income and bonds, acquired approx $3.56 million in IBIT quota. All the Strategic Global Bond Fund (MAWIX)also from BlackRock, but focused on global investments, bought others $485,000.
It is therefore possible that these ETFs are still in their infancy and are far from being exhausted. Another point to strengthen this statement is herd behavior, where new companies are more confident in investing in Bitcoin after the arrival of big names.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
