BlackRock's iShares Bitcoin Trust Closing In On Grayscale's GBTC Market Share Despite Reduced Inflows
Summary:
BlackRock’s Bitcoin exchange-traded fund, the iShares Bitcoin Trust (IBIT), is nearing Grayscale’s Bitcoin Trust ETF (GBTC) in market share. IBIT currently holds 32.6% of the market, despite slower accumulation since March. Declining inflows in ETFs since March have also affected Bitcoin’s price. Since its launch, Grayscale’s GBTC has seen significant sell-offs, influenced by its 1.5% trading fee, which is the highest among all U.S. Bitcoin ETF issuers.
The iShares Bitcoin Trust (IBIT), a Bitcoin exchange-traded fund (ETF) of BlackRock, is gradually inching towards the market share of Grayscale’s Bitcoin Trust ETF (GBTC). As per Dune data, IBIT saw the second-least daily inflows of $24.9 million on April 17, coming soon after its lowest day of inflows worth $20.4 million on April 9. What's interesting is that despite the reduced daily inflows, IBIT is tiptoeing towards GBTC’s market share of 36.8% and now holds 32.6% of the market dominion. This makes it the largest spot Bitcoin ETF with GBTC's Bitcoin holdings valued at $19 billion and BlackRock's ETF currently at $16.8 billion.
It wouldn't be unrealistic to consider IBIT surpassing GBTC as GBTC's Bitcoin holdings fell 50% before Bitcoin halving decreasing from 619,220 BTC on January 11, on the first day of trading, to the present 308,105 BTC.
A closer examination of the accumulation behavior shows that BlackRock’s Bitcoin have slowed down since its peak day on March 13 with net inflows of $866 million. Even so, BlackRock’s Bitcoin ETF holdings witnessed an increase of over 10,200%, climbing from 2,621 BTC at its inception, to its present 272,550 BTC.
The declining trend is also seen in Grayscale’s Bitcoin sales since the outflows of $607 million on March 19, marking it the fourth most important day of outflows from its initiation. Comparatively, the GBTC outflows were recorded at $79 million on April 17 as per Dune.
With a slowdown in ETF inflows since March, ETFs total inflows last week were more than $199 million, a significant reduction from $2.58 billion in the beginning week of March 11.
Simultaneously, Bitcoin price have also come under pressure as a result of the slowed ETF inflows. They saw a 10.7% decrease last week to be at a trade value of $62,971 at 12:30 pm UTC, with data from CoinMarketCap. Bitcoin slid under $60,000 on April 17, a few days ahead of halving.
Notably, since its initial trading, Grayscale’s GBTC has faced considerable sell-offs adding intense selling force to Bitcoin. These enormous outflows emerge from GBTC’s high trading fee of 1.5%, the highest among all Bitcoin ETF issuers in U.S. By contrast, Grayscale’s IBIT holds 0.25% of the trading fees while Franklin Templeton’s ETF only charges 0.19%.
Published At
4/18/2024 2:56:07 PM
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