The BlackRock iShares Bitcoin ETF (IBIT) is the first spot bitcoin product to reach $2 billion in assets under management (AUM). The fund added about $170 million and 4,300 bitcoin on Thursday, bringing its total holdings to 49,952 bitcoin. The fund ranks third among all the ETFs that launched in the past year and could soon become the leader. The next closest competitor is Fidelity’s Wise Origin Bitcoin Fund (FBTC), which has 44,000 bitcoin as of Jan. 25. The article cites ETF Store president Nate Geraci as a source of information1

The article also explains why IBIT is different from other bitcoin products, such as Grayscale’s GBTC, which had nearly $30 billion in AUM at the time of its conversion from a closed-end fund to a spot ETF. IBIT is a spot bitcoin ETF, which means it directly holds bitcoin and tracks its price. GBTC, on the other hand, was a trust that traded at a premium or discount to the underlying asset. IBIT also has a lower expense ratio of 0.12% compared to GBTC’s 2%1

The article also discusses the potential impact of IBIT on the bitcoin market and the ETF industry. IBIT could attract more institutional and retail investors to bitcoin, as it offers a convenient and regulated way to access the cryptocurrency. IBIT could also challenge the dominance of GBTC, which has been the largest and most popular bitcoin product for years. IBIT could also inspire more innovation and competition in the ETF space, as more issuers and regulators look to launch their own bitcoin ETFs1

by the PDOGE team

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