BlackRock Takes the Crown for the Largest Spot Bitcoin ETF From Grayscale
BlackRock Dethrones Grayscale in Bitcoin ETF Race?
BlackRock has overtaken Grayscale as the largest spot Bitcoin ETF holder in the U.S. with its IBIT fund now holding nearly $20 billion in Bitcoin. This shift comes after significant recent inflows, including a $102 million addition on Tuesday. Meanwhile, Grayscale's GBTC experienced outflows, reducing its holdings to $19.7 billion. BlackRock also incorporated the IBIT into its income and bond-focused funds, further boosting its market position amid a bullish trend in the crypto sector.
What recent developments led to BlackRock's IBIT becoming the largest spot bitcoin ETF in the U.S., surpassing Grayscale's GBTC?
BlackRock's IBIT became the largest spot bitcoin ETF in the U.S., surpassing Grayscale's GBTC, due to a combination of factors. Buying activity for IBIT ramped up recently amid bullish sentiment for bitcoin and the broader crypto market. The bulls gained momentum after the listing approval for ether (ETH) ETFs and renewed support for crypto among U.S. political parties. This shift in sentiment led to increased inflows to IBIT, reaching a record $102 million in inflows on May 28, 2024. On the other hand, GBTC experienced an outflow of $105 million on the same day. Additionally, BlackRock added the bitcoin ETF to its income and bond-focused funds in the first quarter, further contributing to IBIT's growth.
What is the relationship between CoinDesk and the Bullish group following their acquisition, and how does this impact CoinDesk’s operational independence?
Following its acquisition by the Bullish group, CoinDesk now operates as an independent subsidiary within the broader Bullish organization. This structural arrangement is designed to maintain CoinDesk's operational independence, particularly in its editorial practices. To safeguard this independence, an editorial committee has been established, chaired by Matt Murray, the former Editor-in-Chief of The Wall Street Journal. This committee is tasked with ensuring that CoinDesk’s journalistic integrity remains intact despite the change in ownership.
The relationship between CoinDesk and the Bullish group is also influenced by the broader context of the acquisition. Bullish, a regulated digital assets exchange, is majority-owned by Block.one, which has significant interests in blockchain and digital asset businesses4. This connection with a major player in the blockchain industry could provide CoinDesk with enhanced financial stability and growth opportunities. However, it also necessitates clear boundaries to prevent conflicts of interest, given Bullish's and Block.one's stakes in the broader crypto market. CoinDesk's establishment of the editorial committee is a critical step in addressing these potential conflicts, aiming to preserve the trust and credibility CoinDesk has established within the cryptocurrency journalism space.