BlackRock IBIT Spot Bitcoin ETF Surpasses 300,000 BTC in AUM

BlackRock Inc’s IBIT spot Bitcoin (BTC) Exchange Traded-Fund (ETF) has exceeded 300,000 BTC in assets under management (AUM) after five months of trading. According to its fund page, BlackRock’s Bitcoin ETF has now accumulated 302,534 BTC with about 4,920BTC in inflows on June 6. 

BlackRock Positioned as the Most Trusted Player

Notably, the IBIT spot Bitcoin ETF’s rapid accumulation of assets has allowed it to surpass the AUM of Grayscale’s GBTC fund, which was recently converted to an ETF. This development is significant, as Grayscale’s GBTC had long been one of the largest and most well-known Bitcoin investment vehicles. BlackRock’s swift overtaking of Grayscale in terms of AUM highlights the competitive edge and market trust BlackRock has cultivated in the cryptocurrency space.

According to CoinGlass data, the total assets held by the eleven U.S. Spot Bitcoin ETFs is almost 883,000 BTC ($63 billion), which is 4.2% of the Bitcoin Total supply.

BlackRock’s IBIT Races to Catch Grayscale’s GBTC in Bitcoin ETF Battle

During the second week of April, crypto news reports showed that the difference in AUM between IBIT and GBTC shrank from $6 billion to the current $3.8 billion. IBTC, which received approval to trade with the U.S. SEC in January 2024, has garnered immense popularity. Backed by BlackRock, the products boast low fees of 0.12% for the first 12 months and 0.25% thereafter. This affordability has been a compelling feature, pulling investors towards IBIT. 

In contrast, GBTC has faced challenges due to its higher fee structure of 1.5%. Reports all showed that investors are moving away from GBTC to seek out cost-effective alternatives. Additionally, GBTC has experienced significant outflows as failed crypto companies exposed to the product seek to recover funds for ex-clients as part of their bankruptcy processes.

BlackRock CEO on IBIT’s Performance 

BlackRock’s CEO Larry Fink is riding high on the success of IBIT, hailing it as the fastest-growing exchange-traded fund in history. In a recent interview with Fox Business, Larry expressed his astonishment at the rapid ascent of IBIT, highlighting its unprecedented $13.5 billion in flows within 11 weeks of trading. 

Larry’s enthusiasm for IBIT is palpable, as he marvels at its impressive performance, which has surpassed his expectations. The offering of BlackRock has garnered over $260 million in inflows per trading day, signaling a robust investor appetite for exposure to Bitcoin. While industry leaders like BlackRock continue to thrive, smaller players must navigate a challenging landscape to carve out their niche.