Is BlackRock’s Bitcoin ETF Ready to Flip the Table on Grayscale?
As the competition for the leading Bitcoin exchange-traded fund (ETF) provider in the U.S. intensifies, the gap between the top contenders has narrowed significantly. Here’s what you need to know:
BlackRock iShares on the Rise
– The Grayscale Bitcoin Trust (GBTC) currently holds the top spot, with $18.7 billion in assets under management (AUM).
– This includes approximately 297,000 Bitcoin.
– Despite GBTC’s lead, the BlackRock iShares Bitcoin Trust (IBIT) is gaining ground.
– With $17.2 billion AUM, IBIT is just $1.5 billion away from surpassing GBTC.
Eric Balchunas’ Prediction
– Bloomberg’s senior ETF analyst, Eric Balchunas, forecasted that IBIT would overtake GBTC by the end of April.
– While this prediction may not come to fruition, IBIT’s recent performance suggests it’s a possibility.
– IBIT has experienced four consecutive days of slowing flows, impacting Balchunas’ earlier projection.
Record Inflows for IBIT
– Prior to the recent slowdown, IBIT enjoyed a remarkable streak of 71 consecutive days with inflows.
– Since its launch, IBIT has not experienced a single day of outflows.
– In contrast, GBTC has consistently seen net outflows since its inception, highlighting the differing trajectories of the two funds.
Narrowing the Gap
– Despite the challenges, the gap between IBIT and GBTC has decreased by almost half in the past two weeks.
– From $2.3 billion to $1.5 billion.
– While substantial inflows remain crucial for both funds, the competition between them is fierce.
Hot Take: Decisive Weeks Ahead
With BlackRock’s IBIT closing in on Grayscale’s GBTC, the battle for supremacy in the Bitcoin ETF market is heating up. Stay tuned as the coming weeks could see a significant reshuffling of the leaderboard.
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