While Bitcoin (BTC) has had a volatile few days, institutional demand for the largest cryptocurrency continues to grow.

BlackRock’s Bitcoin ETF (IBIT) in particular has once again made significant strides, continuing its long inflow streak and demonstrating its dominance in the sector.

As reported by Senior ETF Analyst Eric Balchunas, the fund has seen approximately $5.175 billion in monthly inflows and now boasts $84.08 billion in assets under management.

This makes IBIT the second-best exchange-traded fund (ETF) in terms of monthly inflows, surpassed only by Vanguard S&P 500 ETF (VOO).

Can BlackRock become number one?

While BlackRock’s performance is already remarkable, some investors believe it could gain even momentum, especially in light of the new regulatory shifts proposed by the U.S. Securities and Exchange Commission (SEC).

Namely, on July 29, the SEC increased the maximum number of options contracts allowed on Bitcoin ETFs from 25,000 to 250,000. 

What makes the change noteworthy is that it applies to all ETFs with listed options, such as IBIT, but excludes some of its competitors, like Fidelity’s Wise Origin Bitcoin Fund (FBTC).

Greg Cipolaro, global head of research at NYDIG, believes the change is thus likely to widen the already expansive gap between IBIT and other players.

The change is likely to widen the monstrous lead that IBIT already has over the other players, while it hobbles FBTC’s position as the second-largest options player.”

He also added that the SEC likewise approved in-kind creation and redemption for crypto ETFs, which allows fund shares to be exchanged directly for the underlying cryptocurrency instead of fiat.

Together, Cipolaro argued, these changes could not only cement IBIT’s dominance but also transform the way institutions and retail investors see crypto assets as a whole.

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