BlackRock’s iShares Bitcoin Trust (IBIT) has now surpassed the Grayscale Bitcoin Trust (GBTC) in BTC holdings, becoming the largest exchange-traded fund offering Bitcoin price exposure.

According to HODL15Capital, on May 28, IBIT saw net inflows of $102.5 million, while GBTC experienced outflows of $105 million, leading to this shift. IBIT now holds 288,670 BTC, compared to GBTC’s 287,450 BTC. Previously, GBTC held 620,000 BTC before converting into a spot Bitcoin ETF.

Analysts suggest that Grayscale’s higher fees have driven investors towards BlackRock’s lower-cost option. This shift coincided with GBTC’s conversion to a spot Bitcoin ETF and the launch of several similar ETFs in the United States.

BlackRock has also integrated its spot Bitcoin ETF into its income and bond-focused funds. Regulatory filings indicate that the Strategic Income Opportunities Fund (BSIIX) invested $3.56 million in IBIT shares, while the Strategic Global Bond Fund (MAWIX) purchased $485,000 worth of shares. These investments are minor portions of the funds' $37.4 billion and $776.4 million portfolios, respectively.

Earlier this week, the total Bitcoin holdings of spot Bitcoin exchange-traded products (ETPs) surpassed 1 million BTC, with most held by US-based spot Bitcoin ETFs.

Currently, Bitcoin is trading at $67,800, having dropped over 3.2% in the past week due to movements from the wallets of the defunct Mt. Gox exchange. These transactions have raised concerns about a potential sell-off by creditors expecting to receive part of the $9 billion in Bitcoin held since Mt. Gox’s 2014 bankruptcy.