BlackRock’s spot Bitcoin exchange-traded fund (ETF), with the ticker symbol IBIT, has overtaken Grayscale’s GBTC to become the largest spot Bitcoin ETF in the United States.
This milestone was achieved after IBIT recorded a $102 million inflow on Tuesday, pushing its total holdings to nearly $20 billion worth of Bitcoin.
TLDR
- BlackRock’s spot Bitcoin ETF (IBIT) has surpassed Grayscale’s GBTC to become the largest spot Bitcoin ETF in the U.S.
- Two BlackRock funds, Strategic Income Opportunities and Strategic Global Bond, added IBIT to their portfolios in Q1 2024.
- IBIT has seen a surge in inflows recently, after a period of low or zero inflows in April.
- Hundreds of traditional financial firms, including major banks and hedge funds, purchased shares in spot Bitcoin ETFs in Q1 2024.
- Spot Bitcoin ETFs globally now hold over 1 million BTC, worth over $68 billion, accounting for nearly 5.1% of Bitcoin’s circulating supply.
The surge in IBIT’s inflows can be partly attributed to BlackRock’s decision to add the ETF to two of its major funds – the Strategic Income Opportunities Fund (BSIIX) and the Strategic Global Bond Fund (MAWIX).
According to regulatory filings with the U.S. Securities and Exchange Commission (SEC), BSIIX acquired $3.56 million worth of IBIT shares, while MAWIX bought $485,000 worth of shares during the first quarter of 2024.
While these investments represent only a fraction of the total assets under management for BSIIX ($37.4 billion) and MAWIX ($776.4 million), they signal a growing acceptance of Bitcoin as a legitimate asset class among traditional financial institutions.
Rick Rieder, BlackRock’s Chief Investment Officer of global fixed income, oversees both funds.
The addition of IBIT to these funds comes at a time when spot Bitcoin ETFs have gained significant traction among institutional investors.
✅ Ladies & Gentlemen!! The Bitcoin ETF flippening 👇@BlackRock 's Bitcoin ETF, $IBIT overtook @Grayscale 's $GBTC pic.twitter.com/EJI0aAPim9
— HODL15Capital 🇺🇸 (@HODL15Capital) May 29, 2024
SEC filings revealed that hundreds of traditional financial firms, including major banks such as Morgan Stanley, JPMorgan, Wells Fargo, Royal Bank of Canada, BNP Paribas, and UBS, as well as hedge funds like Millennium Management and Schonfeld Strategic Advisors, purchased shares in spot Bitcoin ETFs during the first quarter of 2024.
Millennium Management stands out as the largest accumulator of spot Bitcoin ETFs, with $1.9 billion invested, including $844.2 million in IBIT and $806.7 million in the Fidelity Wise Origin Bitcoin Fund (FBTC).
The growing institutional interest in spot Bitcoin ETFs has contributed to a significant milestone for the cryptocurrency industry.
Globally, spot Bitcoin ETFs now hold over 1 million Bitcoin, worth over $68 billion, accounting for nearly 5.1% of Bitcoin’s circulating supply, according to data from CoinGecko.
While IBIT’s recent surge in inflows marks a turnaround from its dismal performance in late April, when it recorded low or even zero inflows and its first-ever day of outflows, the broader bullish sentiment for Bitcoin and the crypto market has likely played a role in boosting demand for the ETF.
The approval of ether (ETH) ETFs and renewed support for crypto among U.S. political parties have contributed to this positive sentiment.
As the crypto industry continues to evolve and gain mainstream acceptance, the milestone achieved by BlackRock’s IBIT serves as a testament to the growing institutional interest in Bitcoin and digital assets.
With traditional financial firms increasingly recognizing the potential of crypto, the industry is poised for further growth and integration into the broader financial landscape.
