As a top player in the spot Bitcoin ETF market, BlackRock boasts of having one of the largest Bitcoin (BTC) holdings amongst its counterparts.
BlackRock Bitcoin Holdings Surge
In just five months of trading, BlackRock’s IBIT has recorded over 300,000 BTC in Assets Under Management (AUM). This holding is currently valued at approximately $21 billion based on the market value of the coin at this time. Precisely, the IBIT fund page confirms that the ETF has now accumulated 302,534 BTC.
The 4,920 BTC in net inflows recorded on June 6 contributed to pushing the holding to its present level.
Amongst the eleven spot Bitcoin ETFs greenlighted by the United States Securities and Exchange Commission (SEC) in January, Grayscale’s GBTC happens to be the one with a head start in terms of assets. The Michael Sonnenshein-led product had been managing Bitcoin in Trust as a private placement fund before it transitioned into public trading on the over-the-counter (OTC) market in 2015.
It was only approved for conversion to an ETF after a federal Court mandated the Commission to consider its request. Even with this predisposition, IBIT surpassed GBTC’s AUM last week. This sentiment is not surprising considering the disparity in BlackRock and Grayscale’s sponsor fee. While BlackRock charges only 0.25%, Grayscale requests as much as 0.9% from investors.
The sponsor fee is believed to give each ETF issuer an advantage over the other. For context, the lower the fee, the more attracted investors are likely to be to such fund. Markedly, Grayscale’s Bitcoin holding fall from 619,220 BTC to 285,651 BTC, a 54% drop, underscores the potency of the impact around the sponsor fee.
Competition Toughens Between BlackRock And Grayscale
Even with the haphazard increase in price that Bitcoin has seen since the spot Bitcoin ETF launch in January, Grayscale’s Bitcoin portfolio has dropped significantly. The value of its portfolio dropped 30% from a value of $28.7 billion on January 11 to $20 billion at current prices. Bitcoin currently trades at $71,468.09 with a 0.21% increase in the last 24 hours.
Meanwhile, some of BlackRock’s IBIT biggest holders are Millennium Management LLC, Schonfeld Strategic Advisors LLC, Aristeia Capital LLC, Boothbay Fund Management and Bracebridge Capital amongst others. Of this group, Millennium is the largest holder, holding as much as 20.8 million BTC under BlackRock’s management.
On one hand, the spot Bitcoin ETF market is performing well and has recently registered net inflows for 18 consecutive trading days.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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