BlackRock’s iShares Bitcoin Trust ETF (IBIT) is rapidly cementing its status as the most dominant BTC fund among its peers.

Bitcoin analyst James Check highlighted the divergence in a June 29 X post, noting that total inflows across all other Bitcoin ETFs have stagnated around $20 billion since December 2024.

In contrast, IBIT alone has drawn over $52 billion in cumulative inflows since its launch, solidifying its dominance in the space.

He further pointed out that this trend is reflected in weekly inflow data, where IBIT attracts the lion’s share of new investments and shows minimal outflows compared to competitors.

Check wrote:

“Dominance for all other ETFs in terms of total AUM has been in constant decline, initially dominated by GTBTC outflows, but more recently due to a clear preference for IBIT by investors.”

This matches data from Bloomberg ETF analyst Eric Balchunas, who noted that based on year-to-date inflows, IBIT now ranks as the fourth-largest ETF in the US.

According to Balchunas’ data, IBIT has leapfrogged over SPDR Portfolio S&P 500 ETF (SPLG) and is closing in on heavyweights like Vanguard Total Stock Market ETF (VTI).

As of June 23, IBIT had recorded $13.7 billion in inflows, which is ahead of SPLG’s $13.4 billion but below VTI’s $19.3 billion.

He also highlighted IBIT’s outlier status, noting that the fund is “the fifth in three-year flows (despite only being alive for 1.5 years).”

These inflows helped the fund cross $70 billion in assets under management (AUM) in just 341 trading days, the fastest rate for any US ETF.

IBIT becomes BlackRock’s most profitable ETF

This breakout performance has translated into significant financial gains for BlackRock.

Nate Geraci, president of ETF Store, pointed out that IBIT generates $186 million annually in fee revenue, surpassing even IVV (BlackRock’s flagship S&P 500 ETF) by $3 million.

According to Arkham Intelligence, this milestone is particularly noteworthy given that IVV is nearly ten times larger than IBIT in terms of assets under management.

The shift signals a broader change in institutional behavior. BlackRock, long associated with traditional equity markets, is now seeing more fee revenue from its Bitcoin ETF than from legacy stock-based products.

Mentioned in this article

The decision, which effectively restores the original supply to 100 billion CRO, has led to widespread backlash among investors who believed the burn was permanent.

Community Outrage and Allegations of Betrayal

ZachXBT, known for exposing unethical practices in the crypto space, did not hold back in his criticism. In a post on X (formerly Twitter), he stated:

“CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community’s wishes as you control the majority of the supply.”

This comment was a direct response to Marszalek’s announcement that Crypto.com had partnered with Trump’s Truth Social to launch a series of ETFs, including one featuring CRO.

Expanding on his criticism, ZachXBT pointed out that investors had bought CRO under the assumption that its supply was permanently capped at 30 billion tokens.

The sudden re-issuance of 70 billion tokens has dramatically altered the tokenomics, leading to accusations that Crypto.com has engaged in misleading practices.

A user reacted to ZachXBT’s post with a simple “Damn…,” to which he responded:

For many in the crypto space, the issue goes beyond dilution. Token burning is widely regarded as an irreversible action that enhances scarcity and increases value.

Crypto.com’s decision to reverse a previous burn breaks this fundamental principle.

The Strategic Reserve and ETF Ambitions

Unchained Crypto, who was among the first to report the issue, noted that Cronos Labs, a Crypto.com subsidiary, decided to reissue 70 billion CRO as part of a broader plan to establish a “Strategic Reserve.”

The stated goal is to fund growth initiatives, including launching the world’s first CRO-backed exchange-traded fund (ETF).

However, critics argue that the move is primarily about control and profit. The re-issuance effectively grants Crypto.com and Cronos Labs the power to manipulate supply and demand at will.

The decision was made unilaterally, with Crypto.com holding enough voting power to push it through despite widespread opposition.

CRO’s price performance further amplifies the controversy. The token is currently down 23% in the past year and 51% from its all-time high in November 2021.

While Crypto.com’s leadership insists that the move is necessary to drive institutional adoption, many investors see it as a blatant cash grab that could ultimately damage CRO’s long-term value.

Crypto.com’s push for an ETF follows the success of Bitcoin and Ethereum ETFs. However, CRO’s prospects remain uncertain.

The token ranks 56th by market capitalization, far behind other digital assets like Solana and XRP that are also seeking ETF approval.

Growing Unethical Practices In the Crypto Space

In relation to the growing unethical practices in crypto, ZachXBT has recently exposed the identity of the “HyperLiquid Whale,” a trader who amassed nearly $20 million through high-leverage crypto trading.

The trader, identified as William Parker, a convicted fraudster with a history of financial crimes, used illicitly obtained funds from phishing scams and casino exploits to place high-risk bets on platforms like Hyperliquid and GMX.

His connections to gambling platforms, phishing schemes, and illicit wallets further suggest that his market success was built on deception rather than skill.

As the crypto community watches closely, the exchange must answer the question of the re-issuance of 70 billion CRO before investor confidence can be restored.

Whether Crypto.com can weather the storm and convince investors of its long-term vision remains to be seen, but for now, the move has left many questioning the integrity of one of the industry’s most prominent exchanges.

The post ZachXBT Accuses Crypto.com of Betraying Trust Over 70B CRO Reissue appeared first on Cryptonews.