BlackRock and Grayscale Fund Gap Reduced to 50 Thousand BTC
As a result of dramatic events, the race for Bitcoin supremacy among ETF issuers has heated up. BlackRock’s iShares Bitcoin Trust (IBIT) is approaching Grayscale’s Bitcoin Trust (GBTC) holdings with less than 50k BTC to cover it. The narrowing gap can be attributed to consistent outflows of GBTC and consistent inflows into IBIT.
BlackRock’s IBIT BTC Reserve Is Only 50 Thousand Less Than GBTC
Latest data reveals that BlackRock’s IBIT is over 266,587 BTC as of April 10, 2024. The value of the BTC reserve is a staggering $18.79 billion. Additionally, the increase in this reserve shows that the gap with Grayscale’s GBTC is narrowing. It currently holds 315,941 BTC worth $22.27 billion, according to Apollo.
Therefore, BlackRock’s IBIT only falls short of 49,354 BTC compared to GBTC. Grayscale, once hailed as a dominant force in the Bitcoin ETF market, has seen a significant decline in its holdings. GBTC held an impressive 619 thousand BTC at its debut on January 10 this year. However, due to large outflows since day one, the Grayscale Bitcoin ETF reserve has dropped to half of its initial value.
The speed with which BlackRock acquired Bitcoin caught the attention of market watchers. With an average weekly purchase rate of 20.12 thousand BTC, BlackRock is quickly closing the gap with GBTC. Meanwhile, it is observed that Grayscale sold an average of 22.62 thousand BTC per week, further narrowing the margin between the two giants.
If this trend continues, BlackRock is poised to overtake Grayscale as the Bitcoin ETF with the largest BTC holdings within a week. Moreover, this will be the biggest milestone for IBIT since the ETF launched on January 10 with only 228 BTC in assets.
Additionally, BlackRock’s rise in the Bitcoin market is particularly notable given that it recently overtook MicroStrategy. BlackRock’s IBIT gained attention after beating the longtime leader in institutional Bitcoin holdings. With 205,000 BTC worth $14 billion, MicroStrategy now finds itself behind both Grayscale and BlackRock in the race for Bitcoin dominance.
Also Read: GBTC Bitcoin ETF Outflows Reaching Balance: Grayscale CEO
Spot the Backlash of Bitcoin ETF Entries
Bitcoin ETFs experienced a significant resurgence in inflows on Wednesday, April 10. This follows two consecutive days of significant outflows. The recovery was particularly notable given Monday’s record-breaking $223.8 million outflow, which marked the largest outflow in Bitcoin ETF history.
BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Bitcoin Fund (FBTC), Ark 21Shares ETF Trust (ARKB), and other notable funds collectively witnessed a total surge of $123.7 million in inflows on Wednesday. This increase in spot Bitcoin ETF inflows has sparked renewed optimism among investors, reversing the negative trend observed earlier in the week.
Additionally, according to Farside UK data, GBTC outflows decreased to 17.5 million dollars. Meanwhile, an inflow of $33.3 million was recorded in the BlackRock Bitcoin ETF. However, FBTC experienced a surge and overtook IBIT with a massive inflow of $76.3 billion. Additionally, Bitwise Bitcoin ETF (BITB) also recorded a good inflow of $24.3 million.
Also Read: VanEck and CoinShares Cast Doubt on SEC Approval of Spot Ethereum ETF
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