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BlackRock’s spot Bitcoin (BTC) exchange-traded fund (ETF), IBIT, has overtaken Grayscale’s GBTC to become the largest product of its kind.
According to data shared by the company, this shift occurred after IBIT experienced a substantial inflow of $102 million on Tuesday.
As of Wednesday morning, IBIT holds nearly $20 billion worth of Bitcoin, according to its product page. In contrast, Grayscale data shows that GBTC now holds $19.7 billion after experiencing outflows of $105 million on Tuesday. Since its launch in January, IBIT has attracted $16.5 billion in investments, while the Grayscale fund has seen withdrawals amounting to $17 billion.
BlackRock’s commitment to its Bitcoin ETF was further demonstrated on Tuesday when the firm added IBIT to its income and bond-focused funds in the first quarter. The Strategic Income Opportunities Fund (BSIIX) now holds over $3.5 million worth of IBIT, and the Strategic Global Bond Fund (MAWIX) has invested $485,000 in the ETF.
Bitcoin ETFs enjoy bullish sentiment
The recent surge in buying activity for IBIT can be attributed to the bullish sentiment surrounding Bitcoin and the broader crypto market. This positive momentum gained traction following the approval of ether (ETH) ETF listings and renewed support for cryptocurrencies among U.S. political parties.
Prior to May 15, IBIT had experienced low or even zero inflows and recorded its first-ever day of outflows in April, which had led to bearish sentiment. However, the recent developments have marked a significant turnaround for the ETF.
Last week, U.S.-listed spot Bitcoin exchange-traded funds achieved a new record in terms of holdings, with more than 850,000 BTC in custody. This surpassed the previous high of 845,000 BTC recorded in early April.
The SEC approved the first US-listed spot Bitcoin ETFs in January, and investors anticipate that both ETNs and ETFs could open the gateway for mainstream capital to flood the crypto market. Earlier this month, Bitcoin and Ethereum spot ETFs were also launched on the Hong Kong stock exchange.
Bitcoin currently ranks as the top cryptocurrency by market capitalization, valued at $1.335 trillion. The price of BTC stands at $67,774, a decrease of 0.94% over the past 24 hours and 2.98% over the past week.
However, the leading cryptocurrency has seen impressive gains of 8.90% over the past month and a remarkable 142.83% over the past year. Bitcoin’s liquidity is increasing further, with the London Stock Exchange (LSE) having listed Bitcoin and Ethereum (ETH) exchange-traded notes earlier this week.
Bitcoin’s all-time high (ATH) of $73,738 was reached on March 14, 2024, and the current price represents a 7.83% decline from that peak. The 24-hour trading range for BTC was between $67,201 and $68,831, with a market cap change of -0.99% over the same period.
