4 months ago
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IBIT dominates as competitors face outflows.
Key Takeaways
BlackRock's iShares Bitcoin Trust recorded $205 million in net inflows on Monday. <?xml encoding="UTF-8"?>BlackRock’s iShares Bitcoin Trust (IBIT) outperformed its ETF peers on Monday, attracting around $205 million in net inflows while the rest of the market reported either losses or zero net flows, data from Farside Investors shows.
US spot Bitcoin ETF flows on July 29 – Source: Farside InvestorsUS spot Bitcoin ETFs collectively attracted approximately $124 million in net inflows on Monday, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for the entire gain.
In contrast, Grayscale’s GBTC, Bitwise’s BITB, and Fidelity’s FBTC experienced net outflows of $54 million, $21 million, and $6 million, respectively. Other competing funds reported zero inflows.
The Bitcoin ETF market will soon welcome Grayscale’s Bitcoin Mini Trust (BTC), a newly approved mini version of the Grayscale Bitcoin Trust. The spin-off offers a competitive edge with a management fee of 0.15%, significantly lower than the 1.5% charged by GBTC.
Starting July 31, Grayscale will transfer 10% of GBTC’s holdings to the Mini Trust, with GBTC shareholders receiving proportional shares in the new fund. With the new BTC fund, Grayscale aims to provide investors with a lower-cost option to gain exposure to Bitcoin through Grayscale’s investment products.
BTC’s lower fees will position it as a strong competitor in the Bitcoin ETF market. Grayscale’s GBTC, once a dominant player, has lost its edge since being converted to an ETF. As of July 29, GBTC’s assets under management (AUM) were $18.1 billion, outperformed by BlackRock’s IBIT with almost $23 billion in AUM.
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