BlackRock's IBIT has now taken the lead as the largest spot bitcoin ETF in the U.S., surpassing Grayscale's GBTC following a $102 million influx on Tuesday. Holding nearly $20 billion worth of bitcoin as of Wednesday morning, IBIT has seen significant investor interest since its inception in January, with $16.5 billion poured in while Grayscale's fund experienced $17 billion in withdrawals.
The investment giant integrated IBIT into its income and bond-focused funds earlier this year, with its Strategic Income Opportunities Fund (BSIIX) holding over $3.5 million worth of IBIT and its Strategic Global Bond Fund (MAWIX) holding $485,000.
This surge in IBIT's popularity comes amidst a bullish sentiment for bitcoin and the wider crypto market, buoyed by the approval of ether (ETH) ETFs and increasing support for cryptocurrencies among U.S. political factions. Prior to this upturn, IBIT had experienced minimal inflows and even outflows in April, reflecting bearish sentiment.
Last week, U.S.-listed spot bitcoin exchange-traded funds collectively held a record-breaking 850,000 BTC in custody, surpassing the previous high set in early April.