IBIT Surpasses GBTC in Bitcoin Trust Fee Competition

BlackRock’s iShares Bitcoin Trust (IBIT) has taken the lead among Bitcoin funds globally, surpassing Grayscale’s Bitcoin Trust (GBTC). Bloomberg reports that IBIT’s assets have been growing rapidly due to increased investment, largely because of its lower fee structure at 0.25% per year. Consequently, the gap in asset size between the two trusts has narrowed to a difference of approximately $2 billion. The more affordable fee is the primary reason for IBIT’s recent surge in popularity.

Investors consistently chose IBIT over GBTC because of the fee difference, leading to regular inflows into IBIT and breaking its record of 68 consecutive days with approximately $16 billion in outflows. By the end of April, as IBIT grows while GBTC is still working on regulatory approval for its smaller version with undisclosed fees, IBIT is expected to maintain its advantageous position.

MFS Investment Management, famous for managing traditional mutual funds, has applied for permission to launch five actively managed exchange-traded funds (ETFs). This move underscores the increasing popularity of ETFs within the financial industry, as more traditional asset managers are adjusting their strategies to cater to investors’ preferences for these investment vehicles.

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2024-04-20 05:08