Blackrock Bitcoin ETF To Flip Grayscale’s GBTC

BlackRock's IBIT ETF set to surpass Grayscale's GBTC to claim the title of the largest ETF by Bitcoin holdings.

BlackRock’s IBIT ETF is poised to overtake Grayscale’s GBTC, potentially becoming the leading ETF in Bitcoin holdings. With IBIT’s daily inflows reaching $24.9 million on April 17, up from $20.4 million on April 9, there’s clear evidence of growing investor enthusiasm and trust in BlackRock’s Bitcoin investment vehicle.

Analysts Speculates Blackrock ETF Surge

Analyst Eric Balchunas anticipates that BlackRock’s IBIT will surpass Grayscale’s GBTC by the end of the month. According to Bloomberg Intelligence analyst Eric Balchunas, a potential flip could occur by April 30, with GBTC currently holding a $2.3 billion lead. Last week, the gap between the two ETFs was around $4 billion.

The Flippening: $IBIT on schedule to pass $GBTC in assets by end of month. GBTC currently hanging on to a $2.3b lead. A monster rally in btc could delay it a bit but I think 4/30 is a solid over/under date. pic.twitter.com/8Utwe2RJsu
— Eric Balchunas (@EricBalchunas) April 16, 2024

GBTC, which has been catering to affluent and institutional investors since 2013, amassed assets exceeding $43 billion by November 2021. However, amidst crypto market turbulence in November 2022, GBTC’s assets plummeted to below $10 billion.

In January, the SEC greenlit GBTC’s transition into a spot Bitcoin ETF, with assets totaling $28.6 billion. Presently, GBTC’s net assets sit at $23.75 billion, attributed by Grayscale CEO Michael Sonnenshein to a sell-off linked to bankrupt crypto firms.

Bitcoin ETFs witnessed three consecutive days of outflows, totaling $149 million. The Bitcoin halving event, expected to reduce miner rewards, is slated for late Friday, April 19, coinciding with 4/20 celebrations.