Global asset management firm BlackRock's Bitcoin spot exchange-traded fund (ETF) has become the world's largest cryptocurrency fund.
On the 29th (local time), Bloomberg News reported, citing its own data, that BlackRock's Bitcoin spot ETF 'iShares Bitcoin Trust' (ticker IBIT) had a net asset value of $19.68 billion, surpassing the $19.65 billion held by the 'Grayscale Bitcoin Trust' (GBTC).
IBIT is one of nine ETFs launched on January 11th, following the U.S. Securities and Exchange Commission's (SEC) approval of Bitcoin spot ETFs earlier that month. On the same day, GBTC, which was previously a Bitcoin indirect product, was converted and listed as a spot ETF.
Given that GBTC effectively paved the way for spot ETF listings, losing the top fund position is a painful point for Grayscale, the managing company. Grayscale filed a lawsuit in 2022 against the SEC's halt on converting GBTC into a Bitcoin spot ETF, and won the case in August last year, creating an opportunity for Bitcoin spot ETFs to be listed.
GBTC's fall from the top spot is attributed to its high fees. It charges a management fee rate of 1.5%, which is higher than other firms' ETFs. According to Bloomberg, IBIT attracted $16.5 billion in funds after its launch, while GBTC saw $17.7 billion in outflows. Grayscale is reportedly planning to launch a new spot ETF with lower management fees.
A BlackRock representative stated in a press release, "The success of IBIT reflects investors' preference for accessing Bitcoin through the convenience of ETFs."
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