According to Bloomberg ETF analyst Eric Balchunas, that performance puts IBIT second only to the Vanguard S&P 500 ETF (VOO) in terms of monthly inflows — a rare feat for a crypto-focused product.
Some industry watchers think the gap between IBIT and its competitors could grow even wider following the U.S. Securities and Exchange Commission’s latest policy changes. On July 29, the SEC approved a tenfold increase in the cap on Bitcoin ETF options contracts — from 25,000 to 250,000 — a move that applies to IBIT but excludes certain rivals like Fidelity’s FBTC.
Greg Cipolaro, global head of research at NYDIG, believes this rule change could further solidify BlackRock’s already dominant lead in the market, especially since IBIT is already the go-to choice for institutions. He also highlighted the SEC’s recent approval of in-kind creation and redemption for crypto ETFs, allowing funds to exchange shares directly for the underlying Bitcoin rather than cash.
Combined, these shifts could reshape how both institutions and retail traders engage with crypto ETFs, potentially making IBIT not just the leader in the sector but the standard-bearer for traditional finance’s entry into Bitcoin.
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