June 14, 2024
Bitcoin ETF

BlackRock’s Bitcoin ETF Closing In on Grayscale

The race for dominance in the world of Bitcoin holdings among institutional giants is heating up as BlackRock’s spot Bitcoin ETF inches closer to overtaking Grayscale’s Bitcoin Trust (GBTC) holdings. With no drastic changes in current flows, experts predict that BlackRock could surpass Grayscale within the next three weeks.

Tightening the Gap: BlackRock vs. Grayscale

As of March 22, BlackRock’s iShares Bitcoin Trust ETF had 238,500 Bitcoin, worth $15.5 billion at current rates. The fund receives an average daily input of $274 million, with roughly 4,120 Bitcoin added to its reserves each day. Meanwhile, Grayscale’s GBTC ETF has an estimated 350,252 BTC worth $23 billion. Over the last two weeks, it has seen average daily outflows of over $277 million, or nearly 4,140 BTC.

GBTC outflows surged in the previous week. Source: Farside Investors

Impending Takeover: BlackRock’s Potential Triumph

Analysts speculate that BlackRock could surpass Grayscale’s holdings as early as April 11 if current inflow and outflow rates persist. The likelihood of an earlier takeover looms, especially if BlackRock’s inflows return to previous levels, suggesting a potential flip within 10 days.

George Tung, a prominent figure in the cryptocurrency community, expressed confidence in BlackRock’s imminent triumph, predicting the event within two weeks.

Potential Market Impacts and Analyst Insights

The substantial outflows from GBTC, notably the staggering $643 million on March 18, have prompted concerns about potential downward volatility in Bitcoin’s price. However, analysts like Eric Balchunas of Bloomberg ETF remain optimistic, foreseeing a potential cessation of outflows in the coming weeks.

Balchunas further attributed the recent outflows to bankruptcies within the crypto industry, suggesting that the worst may soon be over.

BlackRock’s ascension in Bitcoin holdings marks a significant milestone in institutional adoption, overtaking MicroStrategy’s holdings earlier this month. As of the latest data, MicroStrategy holds 214,246 BTC, further underlining the growing presence of institutional players in the cryptocurrency market.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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