BlackRock's ETF Outperforms Grayscale: What's Next for Bitcoin (BTC)?

BlackRock's $20 Billion ETF Is Now the World's Largest Bitcoin Fund

BlackRock Inc.'s iShares Bitcoin Trust has become the largest Bitcoin fund, accumulating nearly $20 billion in assets since its U.S. listing at the beginning of the year. According to Bloomberg data, the ETF held $19.68 billion worth of tokens as of Tuesday, surpassing the $19.65 billion held by Grayscale Bitcoin Trust.

Impact of New Bitcoin ETFs on the Market

The launch of BlackRock and Fidelity's Bitcoin ETFs was a major milestone for the cryptocurrency market. These ETFs were among nine ETFs introduced on January 11, the day the Grayscale vehicle from a decade ago became an ETF. This development made Bitcoin more accessible to investors, contributing to its record high of $73,798 in March.

Since its inception, iShares Bitcoin Trust has attracted the largest amount of inflows and has accumulated $16.5 billion in assets. In comparison, investors withdrew $17.7 billion from the Grayscale fund during the same period. High wages and arbitrage opportunities are cited as possible reasons for these outflows. Neither BlackRock nor Grayscale Investments LLC responded to requests for comment made outside U.S. business hours.

Grayscale plans to launch a clone of its parent fund with lower fees, a source familiar with the matter said in a regulatory filing in March. The US Securities and Exchange Commission (SEC) reluctantly approved the first US spot-Bitcoin ETFs in January, following the court decision in the lawsuit filed by Grayscale in 2023.

BlackRock's iShares Bitcoin Trust has quickly become the largest Bitcoin fund, highlighting the growing acceptance and availability of Bitcoin ETFs.