According to the latest statistics, U.S. spot bitcoin exchange-traded funds (ETFs) experienced ten consecutive days of positive inflows. Notably, during a third of those days, Grayscale’s Bitcoin Trust (GBTC) faced outflows and neutral activity. Conversely, Blackrock’s IBIT saw inflows on most of the ten trading days.
Blackrock’s IBIT Nears Grayscale’s GBTC in Bitcoin Reserves
This article was published more than a year ago. Some information may no longer be current.
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Blackrock’s IBIT and Grayscale’s GBTC Neck and Neck in Bitcoin ETF Race
During the past ten trading days, spot bitcoin ETFs accumulated over a billion U.S. dollars in net inflows, with each day showing a positive influx. The last trading day recorded $251.9 million in net inflows and five of the 11 ETFs saw inflows while GBTC, BTCO, BRRR, EZBC, and BTCW saw no losses or gains. On May 22 and 23, GBTC saw net outflows while the rest of the gang saw inflows or neutral numbers.
Blackrock’s IBIT has seen inflows for a majority of the ten day span while before this period, the fund saw a few days of no inflows or outflows. The race between GBTC and IBIT is getting awfully close in terms of bitcoin ( BTC) reserves held. Time has shown with most passing trading sessions while GBTC sheds BTC from the balance sheet, IBIT picks up a cache from inflows. In fact, much of the GBTC reductions could have simply been acquired by IBIT.
As of the latest data from IBIT recorded on May 24, Blackrock’s spot bitcoin fund holds approximately 287,167.74 BTC. Meanwhile, Grayscale’s Bitcoin Trust once held 617,079.99 BTC on Jan. 12, 2024. It’s been 137 days since then and while GBTC has recorded a small handful of inflow days, most have been outflows. This has resulted in GBTC divesting a whopping 328,039.47 BTC worth $22.38 billion during that timeframe.
Today, GBTC holds approximately 289,040.52 BTC as of May 24, 2024 records. The cache is worth $19.72 billion using exchange rates on May 28. IBIT’s cache is worth $19.59 billion using BTC’s current exchange rate. All IBIT needs to do is amass 1,872.78 BTC to catch up to GBTC’s reserves and if GBTC keeps leaking BTC from the hatch, IBIT will catch up even quicker.
As the battle for dominance in the bitcoin ETF space intensifies, it’s clear that Blackrock’s IBIT is rapidly closing the gap with Grayscale’s GBTC, thanks to its consistent inflows and GBTC’s persistent outflows. This shift in market dynamics could potentially redefine the landscape of bitcoin investment vehicles in the near future, positioning Blackrock at the pinnacle.
In the realm of exchange-traded funds, Blackrock is accustomed to reigning supreme. Blackrock’s Ishares ETFs are among the largest and most frequently traded ETFs worldwide. The Ishares Gold Trust (IAU) ranks as one of the largest gold-backed ETFs, while the Ishares Core S&P 500 ETF (IVV) is a leading ETF tracking the S&P 500 index. In the near future, the Ishares Bitcoin Trust (IBIT) could become the largest spot bitcoin ETF globally.
What do you think about IBIT getting closer to GBTC’s bitcoin reserves? Share your thoughts and opinions about this subject in the comments section below.
