As a researcher with a background in finance and experience following the cryptocurrency market closely, I find this development between BlackRock’s IBIT and Grayscale’s GBTC to be an intriguing turn of events. The fact that BlackRock’s Bitcoin ETF has surpassed Grayscale as the largest Bitcoin fund in just a few short months is a testament to the growing institutional adoption of Bitcoin.
In a significant development, the BlackRock iShares Bitcoin ETF (IBIT) has surpassed Grayscale’s GBTC to become the largest Bitcoin investment fund available on the market as of May 28, 2021. This shift in ranking occurred due to over $100 million in new investments flowing into IBIT during that day. Meanwhile, Bitcoin’s price has risen by approximately 1%, reaching above the $68,700 mark within the past 24 hours.
BlackRock Holds ~$20 Billion Worth of Bitcoins
Over the past four months, BlackRock’s Bitcoin ETF, symbolized as $IBIT, has gathered an impressive total asset management (AUM) of approximately $19.79 billion. Simultaneously, Grayscale’s GBTC AUM has decreased by around $18 billion during the same timeframe, now amounting to roughly $19.75 billion.
Due to swift expansion and significant outflows from Grayscale, BlackRock has overtaken Grayscale as the globe’s largest Bitcoin spot ETF in terms of assets under management.
On May 28th, Bitcoin exchange-traded funds (ETFs) recorded a total inflow of 632 Bitcoins, which is equivalent to approximately $43.3 million. This marks the eleventh consecutive day of Bitcoin ETF investment. Among the major players, BlackRock took the lead by adding 1,505 Bitcoins or about $102 million. This surpassed Grayscale’s position as the largest Bitcoin ETF holder. Fidelity also joined in, contributing an additional 505 Bitcoins ($34 million). In contrast, Grayscale experienced a net withdrawal of 1,550 Bitcoins or roughly $105 million during this period.
BlackRock made an intriguing move by purchasing approximately $3.9 million in IBIT shares for two of its funds as stated in a recent SEC filing. Specifically, the company allocated $3.6 million to the BlackRock Strategic Income Opportunities Portfolio (BSIIX) and $486,000 to the BlackRock Strategic Global Bond Fund (MAWIX).
ETFs Alone Control 5% of Total BTC Supply
Among the robust backing from institutional investors, approximately 5% of the entire Bitcoin supply is currently managed by Bitcoin ETF funds globally.
Approximately 5% of Bitcoin’s entire 21 million coin supply is currently held by US Spot Bitcoin Exchange-Traded Funds (ETFs). Based on data from the blockchain analytics platform Dune, these ETFs collectively possess around 842,000 BTC, equivalent to approximately $57.2 billion in value.
As a researcher, I’ve discovered that approximately 4.27% of the total Bitcoin supply is currently held by Bitcoin Exchange-Traded Fund (ETF) issuers. A noteworthy figure to highlight is the roughly 1,002,343 BTC controlled by these entities, as disclosed in a screenshot posted on X (previously Twitter) by MicroStrategy’s co-founder and former CEO, Michael Saylor.
The price of Bitcoin has been exhibiting a gentle upward trend, yet it remains below its significant barrier at $70,000. Certain Bitcoin analytics indicate a potential bullish advance in the near future.
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2024-05-29 07:18