BlackRock's Physically-Backed Bitcoin ETF Surpasses Grayscale's GBTC in AUM

IconCryptoNewsTerminal Staff22 May, 2024

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BlackRock's Physically-Backed Bitcoin ETF Surpasses Grayscale's GBTC in AUM

BlackRock's physically-backed bitcoin ETF, IBIT, has surpassed Grayscale's GBTC in terms of assets under management (AUM), according to data from The Block. This represents a significant milestone for BlackRock, as it is the first time that a physically-backed bitcoin ETF has overtaken Grayscale's GBTC in terms of AUM. The surge in IBIT's AUM is likely due to its lower fees and more transparent structure compared to GBTC. IBIT has an annual management fee of 0.40%, while GBTC has an annual management fee of 2.00%. Additionally, IBIT is a physically-backed ETF, meaning that it holds actual bitcoin in its reserves, while GBTC is a trust that holds shares of Grayscale's Bitcoin Investment Trust. This makes IBIT more transparent and less risky for investors. The shift in AUM from GBTC to IBIT suggests that investors are increasingly seeking out lower-cost and more transparent ways to invest in bitcoin. It also highlights the growing popularity of physically-backed bitcoin ETFs, which offer investors a more secure and convenient way to gain exposure to the digital asset.

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