BlackRock’s IBIT fund becomes the largest Bitcoin ETF

IBIT is now the largest Bitcoin ETF in the world after a $20 billion growth.
IBIT may be set to overtake IAU Gold ETFs with its current run.
Grayscale's high fee structure has caused massive outflows.

Bitcoin ETFs experienced a shake-up on Wednesday after IBIT surpassed Grayscale to become the biggest Bitcoin fund.

IBIT surpasses Grayscale

BlackRock's IBIT flipped Grayscale's GBTC on Wednesday to become the largest Bitcoin ETF with nearly $20 billion in total assets. Since spot Bitcoin ETFs went live in the US on January 11, IBIT has been on a meteoric rise, adding an average of $145 million daily.

According to Bloomberg analyst Eric Balchunas, the JP Morgan Equity Premium ETF (JEPI) was the only ETF to reach $20 billion in under 1000 days. While JEPI took 985 days to achieve that feat, IBIT did the same in less than 137 days.

Also read: Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

President of ETF Store Nate Geraci said IBIT's next target is to track down the IAU gold ETFs. Since its launch in 2005, IAU has held about $29 billion in total assets. With IBIT at $20 billion, it may go ahead and flip IAU before the year runs out.

IBIT's successful growth, according to Balchunas, is largely tied to its low fee structure, improved liquidity and brand name.

On the other hand, Grayscale has faced a massive exodus of BTC from its platform as users have complained of its high fee structure.

Ark Invest CEO Cathie Wood said Ark 21Shares isn't interested in making money from Bitcoin ETFs. "We should make the ETF as accessible as possible to many people, so keep the fee very low," she said. Ark 21Shares Bitcoin ETFs' current fees are 0.21%.

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