BlackRock Inc.’s iShares Bitcoin Trust has recently surpassed Grayscale Bitcoin Trust to become the largest fund for the original cryptocurrency globally. Since its introduction in the US at the beginning of this year, the exchange-traded fund has accumulated nearly $20 billion in total assets. Data compiled by Bloomberg reveals that as of Tuesday, the iShares Bitcoin Trust held $19.68 billion worth of the token. Following closely behind is Grayscale Bitcoin Trust with $19.65 billion in assets, and Fidelity Investments with an $11.1 billion offering ranks third.
The launch of nine ETFs on January 11, which included BlackRock and Fidelity’s offerings coinciding with Grayscale’s shift into an ETF after more than a decade, marked a significant milestone for the crypto sphere.
This significant milestone for Bitcoin means better accessibility to investors, extending a bullish run that saw the cryptocurrency skyrocket in value to $73,798 in March.
The higher fees and exits by arbitragers associated with the Grayscale fund have been pinpointed as potential factors driving these outflows.
In total, the Grayscale fund has seen investors withdraw $17.7 billion with a total of $16.5 billion in inflows coming to the iShares Bitcoin Trust.
A March regulatory filing indicates that Grayscale intends to launch a clone of its main fund with lower fees.