BlackRock’s iShares Bitcoin Trust (IBIT) has taken a major lead in the Bitcoin ETF market. It now holds the top spot, surpassing Grayscale’s Bitcoin Trust (GBTC) in both assets under management (AUM) and Bitcoin holdings. This shift marks a turning point in how investors access Bitcoin through regulated funds.
IBIT’s Rise to the Top
Since its launch in January 2024, IBIT has grown rapidly. It now holds around 288,670 BTC, edging past GBTC’s 287,450 BTC. This is impressive considering GBTC started with about 620,000 BTC at its ETF conversion but has faced steady outflows since.
In terms of assets, IBIT manages roughly $19.68 billion, slightly more than GBTC’s $19.65 billion as of late May 2025. Fidelity’s Bitcoin ETF trails behind with $11.1 billion.
What’s Driving IBIT’s Growth?
Several factors explain IBIT’s success:
- Lower Fees: IBIT charges a 0.25% management fee, far less than GBTC’s 1.5%. This cost difference attracts investors looking for affordable Bitcoin exposure.
- Strong Inflows: On May 28, 2025, IBIT saw $102.5 million in inflows, while GBTC experienced a $105 million outflow. This shows a clear preference shift toward BlackRock’s ETF.
- Institutional Support: Big investors like the State of Wisconsin Investment Board have increased their stakes in IBIT, signaling confidence in BlackRock’s product.
- Market Demand: Investors want regulated, transparent Bitcoin exposure. IBIT offers that with a trusted brand backing it.
Comparing IBIT and GBTC
| Feature | BlackRock IBIT | Grayscale GBTC |
| Bitcoin Holdings (BTC) | ~288,670 | ~287,450 |
| Assets Under Management | ~$19.68 billion (May 2025) | ~$19.65 billion (May 2025) |
| Launch Date | January 2024 | Converted to ETF January 2024 |
| Management Fee | 0.25% | 1.5% |
| Recent Inflows/Outflows | $102.5 million inflow (May 28) | $105 million outflow (May 28) |
| Institutional Demand | High, growing | Declining |
| Legacy | New but fast-growing leader | Established but losing market share |
What’s Next for IBIT?
IBIT now holds over 3% of the total Bitcoin supply, making it the second-largest Bitcoin holder after Satoshi Nakamoto’s wallet. Analysts suggest that if Bitcoin’s price climbs to around $150,000, IBIT could surpass Satoshi’s holdings by next summer. This would likely attract even more institutional investors.
Key Takeaways
- BlackRock’s IBIT is now the largest Bitcoin ETF by AUM and Bitcoin holdings.
- Lower fees and strong institutional interest fuel IBIT’s growth.
- GBTC’s higher fees and outflows have weakened its market position.
- IBIT could soon hold more Bitcoin than Satoshi Nakamoto if prices rise.
- The Bitcoin ETF market is shifting, with IBIT leading new inflows and setting volume records.
FAQs
Q: Why did IBIT overtake GBTC?
- A: IBIT’s lower fees and strong inflows from institutions helped it surpass GBTC, which has seen outflows and maintains higher fees.
Q: How much Bitcoin does IBIT hold?
- A: About 288,670 BTC, slightly more than GBTC’s 287,450 BTC.
Q: Why are fees important?
- A: Lower fees make IBIT more attractive, especially for long-term investors, leading to more inflows.
Q: Can IBIT surpass Satoshi’s Bitcoin holdings?
- A: It’s possible if Bitcoin’s price rises significantly, boosting institutional demand.
BlackRock’s IBIT is reshaping Bitcoin investment. Its rise shows how cost, trust, and institutional interest drive success in the evolving Bitcoin ETF space. Investors now have a new leader to watch closely.
