In the latest development in the cryptocurrency investment sphere, BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken Grayscale Bitcoin Trust (GBTC) as the world’s largest Bitcoin fund, with assets nearing $20 billion. This milestone, known as the ‘flippening,’ marks a significant shift in investor preference towards ETFs with lower fees and better performance. Grayscale has attempted to counteract this by launching a new ETF with reduced fees and spinning off a portion of GBTC to provide initial capital but has seen a net outflow of $17.7 billion since the conversion of GBTC to an ETF compared to IBIT’s inflow of $16.5 billion since its launch in January.The broader cryptocurrency market has responded to these developments with significant price movements. Bitcoin crossed the $71,000 mark, a 15% increase from the previous day, and is currently fluctuating around $67,000 to $72,000. Ether, the second-largest cryptocurrency by market capitalization, experienced a 20% surge to around $3,750, driven by measures taken by the US Securities and Exchange Commission that sparked speculation about the imminent approval of Ether ETFs. The SEC’s recent actions have also put pressure on regulators in South Korea, where investors are now urging for the approval of crypto ETFs.This influx of institutional money into Bitcoin ETFs, amounting to over 1 million BTC or 4% of the total supply, underscores the growing acceptance of cryptocurrencies as a legitimate asset class. With immediate support and resistance levels for Bitcoin at $66,000 and $72,000 respectively, and Ether’s price reaching its highest level since mid-March, the market is closely watching for potential breakouts as it navigates the evolving regulatory landscape and the increasing institutionalization of digital assets.
Key points
- BlackRock’s iShares Bitcoin Trust (IBIT) has become the world’s largest Bitcoin fund, surpassing Grayscale Bitcoin Trust (GBTC) with nearly $20 billion in assets.
- The price of Ether surged by 20% to around $3,750 amid speculation of SEC’s approval of Ether ETFs, while Bitcoin crossed the $71,000 threshold.
- Bitcoin ETFs have enabled the purchase of over 1 million BTC, signifying the growing institutional embrace of cryptocurrency.
- South Korean investors are pressuring regulators to approve cryptocurrency ETFs following the SEC’s recent approvals.
