BlackRock Surpasses Grayscale in Bitcoin Holdings
BlackRock’s iShares Bitcoin Trust (IBIT) has recently overtaken the Grayscale Bitcoin Trust (GBTC) in terms of Bitcoin holdings, making it the largest exchange-traded fund offering exposure to Bitcoin’s price in the world.
IBIT’s Bitcoin Holdings Exceed GBTC
- IBIT recorded net inflows of $102.5 million on May 28.
- GBTC experienced outflows of $105 million, leading to this shift.
- IBIT now holds 288,670 Bitcoins compared to GBTC’s 287,450.
Analysts attribute this change to the higher fees charged by Grayscale, leading investors to opt for BlackRock’s lower-cost alternative after GBTC became a spot Bitcoin ETF. This move coincided with the introduction of several ETFs in the United States.
BlackRock’s Strategic Funds Invest in IBIT
- BlackRock’s Strategic Income Opportunities Fund and Strategic Global Bond Fund have added exposure to IBIT.
- BSIIX invested $3.56 million in IBIT shares, while MAWIX purchased $485,000 worth of shares.
- These investments are a small portion of the funds’ total portfolios.
Total Bitcoin Holdings of Spot Bitcoin ETPs Exceed 1 Million BTC
This week, spot Bitcoin exchange-traded products (ETPs) surpassed 1 million BTC in total holdings. Most of these coins are held by spot Bitcoin ETFs in the United States.
Bitcoin Trading and Mt. Gox Concerns
- Bitcoin is currently trading at $67,800, dropping more than 3.2% over the past week.
- A series of movements from Mt. Gox’s cryptocurrency wallets raised concerns about a potential sell-off.
- Creditors are set to receive a portion of the $9 billion Bitcoin hoard Mt. Gox has held since its 2014 bankruptcy.
Hot Take: Bitcoin Holdings Shift Towards BlackRock
Investors are flocking towards BlackRock’s iShares Bitcoin Trust as it surpasses Grayscale Bitcoin Trust in BTC holdings. The move has been attributed to Grayscale’s higher fees, prompting a shift towards BlackRock’s lower-cost alternative. Additionally, BlackRock’s strategic funds have invested in IBIT, further solidifying its position. The total Bitcoin holdings in spot Bitcoin ETPs have exceeded 1 million BTC, primarily held by US-based ETFs. However, concerns arose over Mt. Gox’s potential sell-off from recent wallet movements.
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