BlackRock's Bitcoin ETF Poised to Surpass Grayscale's GBTC in Bitcoin Holdings
Summary:
BlackRock's spot Bitcoin ETF is anticipated to surpass Grayscale's GBTC in Bitcoin holdings by April 11, given the recent trend of inflows and outflows. As of March 22, BlackRock held 238,500 BTC worth $15.5 billion, with an average daily inflow of 4,120 BTC. Grayscale, despite maintaining around 350,252 BTC, saw intensified outflows of 4,140 BTC daily. Should BlackRock outpace Grayscale, it will become the world's largest institutional Bitcoin holder.
Presently, the Bitcoin holdings in BlackRock’s spot Bitcoin ETF is expected to exceed Grayscale’s GBTC, barring any sudden shifts in the current trends. On record, BlackRock’s Bitcoin ETF possessed 238,500 BTC, equivalent to $15.5 billion as of March 22. The ETF has been boasting an average daily entry of roughly $274 million - equalling about 4,120 new Bitcoins added to the fund daily. On the other hand, Grayscale’s Bitcoin Trust (GBTC) continues to maintain around 350,252 BTC—valued at $23 billion at today’s prices—despite an average daily outflow of approximately $277 million, or 4,140 BTC every day in the past two weeks. The outflows from GBTC accelerated last week.
If the rate of inflows and outflows remains steady, BlackRock may exceed Grayscale in terms of total Bitcoin held by April 11. If BlackRock's inflows revert to last week's average daily influx of 7,200 Bitcoin, this switch could occur in just 10 days. A YouTube video posted on March 20 by George Tung on his CryptosRUs channel hinted at this change, stating, “BlackRock is going to flip Grayscale soon…I say within the next two weeks—it’s going to happen.”
Should this happen, BlackRock would be the most significant institutional holder of Bitcoin worldwide. In a surprising twist, on March 18, GBTC recorded a record-breaking net outflow of $643 million, the highest ever seen. While the outflows slightly decreased over the next few days, increasing outflow volumes have prompted predictions of potential downward price volatility for Bitcoin. Senior Bloomberg ETF analyst Eric Balchunas suggested that the outflow trend led by GBTC could completely phase out in the next few weeks. Also, Balchunas reasoned that most of the outflows last week were likely due to known crypto firms like Genesis and Digital Currency Group filing bankruptcy, given their "size and consistency."
On March 10, BlackRock’s spot Bitcoin ETF holdings surpassed those of MicroStrategy for the first time. Currently, after buying an additional 9,000 BTC on March 19, MicroStrategy has 214,246 Bitcoins in its possession.
Published At
3/25/2024 5:08:40 AM
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