This is why BlackRock’s IBIT is the largest position Bitcoin ETF.

In a significant shift in the crypto market, BlackRock's iShares Bitcoin Trust (IBIT) has overtaken Grayscale Bitcoin Trust (GBTC) to become the world's largest Bitcoin exchange-traded fund (ETF).

The latest SoSoValue data shows that IBIT now holds $19.68 billion in Bitcoin (BTC), slightly surpassing GBTC's $19.65 billion.

How did Greyscale GBTC lose its top spot to BlackRock IBIT?

This milestone, which occurred within 96 trading days of the approval of Spot Bitcoin ETFs, marks the beginning of a significant era for crypto-financial products.

Grayscale charges a fee of 1.5% for the GBTC ETF, which is significantly higher than its competitor. Thus, grayscale gradually lost its appeal among investors as they opted for alternatives such as BlackRock IBIT.

“During the Grayscale conversion (January 10, 2024) 620,000 BTC was held, which was 3% of the transfer offer, but refused to lower the fee (1.5% vs 0.2% for peers), even after investors pulled 330,000+. BTC according to HODL15Capital for” Different” method.

Read more: How to trade Bitcoin ETF: A step-by-step approach

Thus, BlackRock's success reflects growing institutional interest in Bitcoin and competitive activity in the ETF market.

Meanwhile, GBTC experienced its largest single-day outflow in 18 trading days, totaling $105 million. However, this decline contrasts with the overall positive trend in the Bitcoin ETF sector, which saw a net inflow of $45.14 million on May 28, 2024. This extends the 11-day net inflow on 11 US Bitcoin ETFs.

In addition, BlackRock has launched its own income and bond-focused funds to invest in IBIT. BlackRock Strategic Income Opportunities Fund (BSIIX) and Strategic Global Bond Fund (MAWIX) bought $3.56 million and $485,000 worth of shares, respectively, according to the Securities and Exchange Commission (SEC) filing. However, these investments only represent a fraction of their portfolio.

Expanding the perspective further, the total holdings of Bitcoin in ETFs now exceeds 1 million BTC, which is about 5% of the total Bitcoin supply. This chapter shows the size and influence of ETFs in the wider Bitcoin market.

Regionally, the United States remains the focal point for Bitcoin revenues, reaching $1.03 billion last week. In addition, other European countries such as Germany and Switzerland also reported higher incomes.

Read more: Crypto ETN vs. Crypto ETF: What's the Difference?

Despite volatile price movements, CoinShares data reflects overall positive sentiment in the market. Digital asset investment products recorded a third consecutive week of inflows, totaling $1.05 billion. This surge in activity brought the total value of digital asset exchange-traded products (ETP) to $98.5 billion.