BlackRock’s iShares Bitcoin Trust has become the largest Bitcoin fund, with close to $20 billion in assets, Bloomberg reported. This growth has come since the US SEC approved the listing of crypto products as early as 2024.
According to official data, on May 28, IBIT held Bitcoin worth $19.68 billion, higher than Grayscale Bitcoin Trust’s $19.65 billion. With $11.1 billion, Fidelity Investments’ FBTC is the third-largest Bitcoin exchange fund.
At the beginning of the year, Fidelity and BlackRock introduced their own Bitcoin ETFs. Grayscale’s Bitcoin vehicle turned into an ETF on the same day.
When these cryptocurrency products were introduced, it became easier for investors to access Bitcoin, which led to a rally in March that saw BTC prices rise to nearly $74,000.
BlackRock’s IBIT attracts the highest investment since going live
BlackRock’s Bitcoin ETF has seen the most outflows since its launch in March, while investors have pulled $17.7 billion out of Grayscale funds during the same time frame. Grayscale fees and arbitrage withdrawals have been identified as potential exit factors.
BlackRock’s Larry Fink claimed at the time that their crypto product was growing at the fastest rate ever.
Grayscale intends to offer a clone of its primary fund, according to the same Bloomberg sources that reference a March regulatory filing. A person with knowledge of the situation expects fees to be lower this time.
The US Bitcoin ETF was approved by the SEC in January
Grayscale established its Bitcoin Trust in 2013, and it has since become the largest of its kind. The year began with the launch of Bitcoin ETFs from BlackRock and Fidelity. On the same day, Grayscale’s Bitcoin Trust changed its structure to become a Bitcoin ETF. According to Bloomberg, there were instances when shares of the Grayscale Bitcoin Trust were exchanged at a significant discount or premium to the net asset value. Because of this, back in January, Grayscale pushed for a conversion to an ETF to guarantee equal trading of the Bitcoin ETF.
