BlackRock ETF Closing In on Grayscale with Low Inflows

BlackRock’s iShares Bitcoin Trust (IBIT) is steadily gaining market share in the world of Bitcoin exchange-traded funds (ETFs), closing in on Grayscale’s Bitcoin Trust ETF (GBTC). On April 17, IBIT saw its second-lowest daily inflows of $24.9 million, just slightly higher than the lowest day of $20.4 million on April 9, according to data from Dune. Even with these lower inflows, IBIT’s current market share of 32.6% is inching closer to GBTC’s market share of 36.8%, making it the largest spot Bitcoin ETF with holdings worth $19 billion. IBIT currently holds $16.8 billion worth of Bitcoin, leaving it $2.2 billion behind GBTC.

It is not impossible for IBIT to surpass GBTC in market share, especially since GBTC’s Bitcoin holdings have dropped by 50% ahead of the Bitcoin halving. On its first day of trading on Jan. 11, GBTC held 619,220 BTC, but it now holds only 308,105 BTC. Looking at the accumulation patterns, BlackRock’s Bitcoin accumulation has slowed down after its record day on March 13 when it received $866 million worth of net inflows. Since its launch, BlackRock’s Bitcoin ETF holdings have skyrocketed by over 10,200%, starting at 2,621 BTC and currently standing at 272,550 BTC.

Similarly, Grayscale’s Bitcoin selling has also been slowing down since March 19 when it saw $607 million worth of outflows, marking its fourth-largest day of outflows since inception. Comparatively, on April 17, GBTC experienced outflows of $79 million. The cumulative inflows into ETFs have been decreasing since March, with last week’s net inflows amounting to over $199 million, a significant decrease from the $2.58 billion seen in the week beginning March 11. The slowing inflows have also had an impact on the price of Bitcoin, which fell 10.7% in the previous week to trade at $62,971. Coincidentally, it fell below $60,000 just days before the halving.

GBTC has been facing a notable sell-off since it began trading, adding significant selling pressure to Bitcoin. This massive outflow can be attributed to GBTC’s high trading fee of 1.5%, the highest among all U.S. Bitcoin ETF issuers. In contrast, Grayscale’s IBIT charges a lower trading fee of 0.25%, and Franklin Templeton’s ETF charges an even lower fee of 0.19%.

4 thoughts on “BlackRock ETF Closing In on Grayscale with Low Inflows

  1. Can’t believe IBIT is gaining on GBTC. GBTC needs to step it up!

  2. IBIT’s holdings worth $19 billion showcase its potential to dominate the spot Bitcoin ETF market.

  3. With a market share of 32.6%, IBIT is definitely gaining traction and proving to be a strong competitor to GBTC.

  4. The impact of the slowing inflows on the price of Bitcoin is something to keep an eye on.

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