BlackRock’s hot new Bitcoin ETF product is fast catching up with Grayscale’s in terms of assets under management (AUM)—with the gap now standing at under $4 billion. The BlackRock iShares Bitcoin Trust (IBIT) has $18.1 billion in assets. The Grayscale Bitcoin Trust (GBTC) has $21.9 billion. That’s a difference of $3.8 billion.
Last week, the difference between the two funds’ assets under management was $6 billion. The gap is closing quickly. Experts and industry observers told Decrypt last week that IBIT would flip GBTC by May—but if things keep up, it could happen as soon as this month.
The BlackRock iShares Bitcoin Trust (IBIT) as of today has $18.1 billion in assets. The Grayscale Bitcoin Trust (GBTC) has $21.9 billion. That’s a difference of $3.8 billion. Last week, the difference between the two funds’ assets under management was $6 billion.
- It received U.S. SEC approval in January
- Comes from world’s biggest asset manager
- Offers low fees at 0.12% for 12 months
- Fees increase to 0.25% thereafter
IBIT has been vastly popular since receiving approval to trade from the U.S. Securities and Exchange Commission in January. The product originates from the world’s largest and most esteemed asset manager. It also boasts low fees at 0.12% for the first 12 months and 0.25% thereafter.
- GBTC has a fee of 1.5%
- Investors moving to cheaper products
- Fund redeeming shares at a rapid pace
GBTC may be a significant name in the crypto world, given its prolonged existence prior to becoming a spot ETF. However, its fee is 1.5%, prompting investors to cash out and switch to more cost-effective products. The fund is also redeeming shares quickly as failed crypto companies with exposure to the product recover cash for ex-clients in bankruptcy processes.
Grayscale CEO’s Perspective on Outflows
- Outflows approaching equilibrium
- Michael Sonnenshein, Grayscale CEO, optimistic
As a result, hundreds of millions of dollars have exited the fund. Nonetheless, Grayscale CEO Michael Sonnenshein mentioned in a Reuters interview on Wednesday that the outflows were approaching an “equilibrium.”
Hot Take
Stay informed on the growing popularity of BlackRock’s iShares Bitcoin Trust (IBIT) and the changing landscape of cryptocurrency investments. As BlackRock’s BTC ETF gains ground on Grayscale, it’s essential to consider the implications for the crypto market as a whole. Investors are flocking to low-fee options, and the competition is heating up between these two major players in the crypto ETF space. Keep an eye on developments in this rapidly evolving sector.
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