The iShares Bitcoin Trust (IBIT) from BlackRock, which functions as a spot Bitcoin exchange-traded fund, is gradually gaining ground in terms of market share against Grayscale’s Bitcoin Trust ETF (GBTC).
On April 17, Dune data reported that BlackRock’s IBIT experienced the second smallest daily inflow of $24.9 million. This is a significant decrease from its record low of $20.4 million in inflows on April 9.
With the second-lowest daily inflows, IBIT’s market share of 32.6% is steadily increasing and is now close to surpassing Grayscale’s GBTC market share of 36.8%, which holds a massive $19 billion in Bitcoin (BTC) and presently holds the title as the largest spot Bitcoin ETF.
At the moment, BlackRock’s Bitcoin-holding ETF manages approximately $16.8 billion in Bitcoin assets, falling slightly below GBTC’s current management of around $19 billion in Bitcoin.
It’s possible for IBIT to overtake GBTC in the top spot, given that GBTC’s Bitcoin holdings decreased by around 50% before the Bitcoin halving. On January 11, GBTC held approximately 619,220 BTC during its first day of trading. However, the current Bitcoin holdings now stand at only 308,105 BTC.
Based on an analysis of acquisition trends, BlackRock’s purchase of Bitcoin has decreased since its peak on March 13, which saw $866 million in net inflows according to IBIT. Nevertheless, BlackRock’s Bitcoin ETF holdings have experienced a significant increase, rising over 10,200% from the initial 2,621 BTC at its inception to the present day total of 272,550.
Since March 19, when Grayscale’s Bitcoin trust, GBTC, experienced $607 million in withdrawals, marking one of its largest outflow days since its creation, the pace of Bitcoin sell-offs by Grayscale has noticeably decreased. In contrast, GBTC recorded only $79 million in outflows on April 17, as reported by Dune.
The amount of money flowing into ETFs on a cumulative basis has decreased significantly since March. Last week, there was approximately $199 million added to these funds, marking a sharp decline from the $2.58 billion influx in the week starting March 11th.
The price of Bitcoin has been held back recently due to decreased inflows into ETFs. This caused a drop of 10.7% during the last week, leaving it at $62,971 as of 12:30 pm UTC, based on CoinMarketCap data. Bitcoin dipped below the $60,000 mark on April 17, just before the halving event.
Since its launch, Grayscale’s GBTC has seen heavy selling, leading to increased pressure for Bitcoin to be sold as well.
The large withdrawals from GBTC can be explained by its high fee of 1.5% for trading, which is the most expensive among all Bitcoin ETFs available in the US. In contrast, Grayscale’s IBIT has a lower fee of 0.25%, while Franklin Templeton’s ETF charges the least at 0.19%.
Read More
- LDO PREDICTION. LDO cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- Chainlink to $20, when? Why analysts are positive about LINK’s future
- Citi analysts upgrade Coinbase stock to ‘BUY’ after +30% rally projection
- Why iShares’ Bitcoin Trust stock surged 13% in 5 days, and what’s ahead
- Spot Solana ETF approvals – Closer than you think?
- Orca crypto price prediction: Buying opportunity ahead, or bull trap?
- Can Ethereum ETFs outperform Bitcoin ETFs – Yes or No?
- How Potential Biden Replacements Feel About Crypto Regulation
- Why Shiba Inu’s 482% burn rate surge wasn’t enough for SHIB’s price
2024-04-18 15:06