Bitcoin ETF: BlackRock & Grayscale Fund Gap Narrows To 50K BTC

Highlights

BlackRock's IBIT approaches parity with Grayscale's GBTC BTC reserve, standing just 50K BTC short.
GBTC experiences significant outflows, leading to a substantial decline in BTC holdings since its debut.
BlackRock's rapid acquisition of Bitcoin suggests a potential takeover of the top spot in the Bitcoin ETF market, posing a significant challenge to Grayscale's dominance.

In a surprising twist, competition intensifies among ETF issuers vying for Bitcoin dominance. BlackRock’s iShares Bitcoin Trust (IBIT) is nearing parity with Grayscale’s Bitcoin Trust (GBTC), with less than 50K BTC remaining to bridge the gap. This convergence is fueled by GBTC’s ongoing outflows and IBIT’s steady inflows, signaling a shifting landscape in the Bitcoin market.

BlackRock’s IBIT BTC Reserve Just 50K Short Of GBTC

Recent data reveals that BlackRock’s IBIT stands at over 266,587 BTC, as of April 10, 2024. The BTC reserve is valued at a staggering $18.79 billion. Furthermore, the surge in this reserve highlights the shrinking difference with Grayscale’s GBTC. Currently, it holds 315,941 BTC worth $22.27 billion, according to Apollo.

Hence, BlackRock’s IBIT is short of only 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. During its debut on January 10 this year, GBTC held an impressive 619K BTC. However, due to the massive outflows since day 1, the Grayscale Bitcoin ETF reserve has dwindled to half of its initial value.

The rapid pace at which BlackRock is acquiring Bitcoin has caught the attention of market observers. With an average weekly acquisition rate of 20.12K BTC, BlackRock is quickly closing the gap with GBTC. Meanwhile, Grayscale is observed selling off an average of 22.62k BTC weekly, further narrowing the margin between the two behemoths.

If this trajectory continues, BlackRock is poised to overtake Grayscale as the Bitcoin ETF with the largest BTC holdings within a week. Moreover, this would be the biggest milestone for IBIT since the ETF started with a mere 228 BTC holdings on January 10.

In addition, BlackRock’s ascent in the Bitcoin market is particularly noteworthy given its recent surpassing of MicroStrategy. After beating the long-standing leader in institutional Bitcoin holdings, BlackRock’s IBIT grabbed the spotlight. With 205,000 BTC worth $14 billion, MicroStrategy now finds itself trailing behind both Grayscale and BlackRock in the race for Bitcoin dominance.

Also Read: GBTC Bitcoin ETF Outflows Reaching Equilibrium: Grayscale CEO

Spot Bitcoin ETF Inflows Rebound

Bitcoin ETFs experienced a significant resurgence in inflows on Wednesday, April 10. This comes after two consecutive days of substantial outflows. The rebound was particularly noteworthy considering the record-breaking outflow of $223.8 million on Monday, marking 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 key funds collectively witnessed a surge in inflows, totaling $123.7 million on Wednesday. This surge in Spot Bitcoin ETF inflows reversed the negative trend observed earlier in the week, instilling renewed optimism among investors.

Moreover, the GBTC outflows slumped to a low of $17.5 million, according to data from Farside UK. Meanwhile, the BlackRock Bitcoin ETF registered an influx of $33.3 million. However, FBTC witnessed a surge and surpassed IBIT with massive inflows of $76.3 billion. Furthermore, the Bitwise Bitcoin ETF (BITB) also registered a decent influx of $24.3 million.

Also Read: VanEck and CoinShares Cast Doubt on SEC’s Approval of Spot Ethereum ETF

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