BlackRock’s (NYSE:BLK) IBIT (NASDAQ:IBIT) has overtaken Grayscale’s GBTC (NASDAQ:GBTC) in just 96 trading days, marking a major change in Bitcoin ETF dominance. BlackRock’s IBIT now holds 288,671 BTC, outshining GBTC’s 287,454 BTC. This milestone was hit after GBTC saw $105 million fly out the door while IBIT raked in $102 million. Crypto and ETF analysts thought IBIT might close the gap even faster, but GBTC had a few spikes—probably some crafty traders shorting Bitcoin.
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This flip happens just as the total Bitcoin held by all funds surpasses 1 million BTC. This includes the nine new U.S. ETFs, converted GBTC, and funds from Germany, Canada, and Hong Kong. The Bitcoin fund game just got a whole lot bigger.
Fees, Fees, Fees: The Real Dealbreaker
Grayscale charges a 1.5% fee on GBTC, a real turnoff when you can get into other Bitcoin ETFs for as low as 0.25%. This fee war was an easy win for IBIT and others. Michael Sonnenshein, Grayscale’s outgoing CEO, saw this coming, predicting outflows as new ETFs with lower fees entered the ring. Forced liquidations from bankrupt crypto estates didn’t help GBTC either.
Sonnenshein’s resignation, occurring in August, is just another sign of the changing guard. Grayscale’s era is clearly waning.
Big Players Back BlackRock
BlackRock’s move to integrate IBIT into its other funds, like the Strategic Income Opportunities Fund (NASDAQ:BASIX) and the Strategic Global Bond Fund (NASDAQ:MAWIX), has been an interesting move. They say investing in yourself is a good investment strategy; BlackRock is just taking this to the extreme.
Major financial institutions — Morgan Stanley, JPMorgan, Wells Fargo, and the rest of the Wall Street crowd — have been diving into Bitcoin ETFs since their launch. Millennium Management, the largest spot Bitcoin ETF hoarder, has piled up $844.2 million in IBIT alone.
It will take some time before the market is likely to see a third competitor for the number one BTC holder in the spot ETFs.
Is Bitcoin a Buy?
According to TipRanks’ Summary of Technical Indicators, Bitcoin is a Buy.
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