In a significant development, investment firm BlackRock has surpassed Grayscale to become the manager of the largest Bitcoin spot ETF in the United States. BlackRock’s flagship product, IBIT, has outperformed Grayscale’s GBTC in terms of assets after recording an influx of $102 million on Tuesday.
As of now, IBIT holds nearly $20 billion in Bitcoin, while GBTC holds $19.7 billion after experiencing $105 million in outflows on the same day.
At the current rate, Bitcoin ETFs are expected to quickly surpass Gold ETFs.
Investment Strategy and Institutional Adoption
BlackRock has integrated the Bitcoin ETF into its income and bond-focused funds. This move, made on Tuesday, marks a significant step in the institutional adoption of cryptocurrency among traditional investors.
BlackRock’s Strategic Income Opportunities Fund (BSIIX) now holds over $3.5 million of IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.
Market Dynamics and Outlook
Buying activity for IBIT has experienced a recent acceleration, fueled by bullish sentiment for Bitcoin and the overall crypto market. This renewed interest comes after the approval of Ethereum Spot ETFs and renewed support for cryptocurrencies among US political parties.
This favorable context has allowed IBIT to make a turnaround after a period of low to no fund inflows before May 15th and a historic day of outflows in April, which had created a bearish sentiment.
Last week, US-listed Bitcoin ETFs reached a new record in terms of holdings, with over 850,000 BTC under management, surpassing the previous peak of 845,000 BTC recorded in early April.
