BlackRock Flips Grayscale as Largest Bitcoin ETF with $19B+ in AUM

The BlackRock iShares Bitcoin Trust (IBIT) briefly flipped the Grayscale Bitcoin Trust (GBTC) as the largest BTC ETF following the latest round of inflows.

On-chain intelligence resource Arkham Intelligence first called attention to this feat in a recent post on X, following reports of the capital flows recorded by the spot Bitcoin ETF market yesterday. Notably,  the entire BTC ETF market in the U.S. saw inflows worth $45 million on May 28, marking its 11th consecutive day of positive netflows.

IBIT Sees Inflows; GBTC Records Outflows 

Meanwhile, according to market data sourced by The Block, BlackRock’s IBIT saw the largest capital inflow valued at $102.5 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) witnessed the second-largest inflow worth $34.3 million. 

In contrast, GBTC recorded massive outflows totaling $105.2 million worth of BTC, as withdrawals from the funds resumed. Recall that the sustained outflows from GBTC since its conversion to an ETF came to a halt on May 13, when it saw zero flows. The ETF then witnessed four consecutive days of inflows from May 15 to 20.

These inflows soon got exhausted, with the trend of outflows resuming from May 22. Meanwhile, during this period, BlackRock’s IBIT recorded zero outflows, with its most recent capital outflow coming up as far back as May 7. According to Arkham, IBIT has seen an influx of $656.7 million worth of BTC over the last week, while GBTC has seen $29.9 million in capital exit. 

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Blackrock’s Bitcoin ETF IBIT has overtaken GBTC to become the largest crypto ETF in the world.

Blackrock had combined inflows of +9451.7 BTC (+$656.7M) over the past 7 days, and now hold 284.5K BTC ($19.4B)

Meanwhile, Grayscale has seen outflows of -435.8 BTC (-$29.9M) over… pic.twitter.com/un6p5Wq9na

— Arkham (@ArkhamIntel) May 29, 2024

IBIT Flips GBTC as Largest BTC ETF

This contrast in inflows and outflows across both funds eventually resulted in IBIT holding 284.5K BTC worth $19.4 billion, making it the largest Bitcoin ETF globally, as it flipped GBTC to assume this position. IBIT has seen $830 million in inflows this month, while GBTC has recorded outflows worth $451.6 million.

Citing this data, Arkham emphasized that IBIT flipping GBTC to assume the dominant position was more due to the large amount of inflows it has commanded in recent times than the outflows from GBTC. Interestingly, as other ETFs record their individual inflows, BTC ETFs in the U.S. now hold 2.67% of BTC’s circulating supply, totaling 562,000 BTC or $38.2 billion.

Eric Balchunas, a renowned ETF analyst from Bloomberg, confirmed IBIT’s feat, stressing that the fund is on its way to make history as the fastest ETF to reach $20 billion in AUM. This record is held by the JPMorgan Equity Premium Income ETF (JEPI), which crossed $20 billion in 985 days. IBIT has only traded for 137 days, including non-business days.

It’s official now. $IBIT is king of the category and prob will be for decades. The low fee + big boy liquidity + iShares brand name is just too powerful (altho there’s plenty of food for everyone). https://t.co/gfeicUz3Iy

— Eric Balchunas (@EricBalchunas) May 29, 2024