BlackRock’s iShares Bitcoin Trust (IBIT) Closing Gap on Grayscale’s Bitcoin Trust (GBTC) with 50K BTC Difference

  • BlackRock IBIT is closing the gap against Grayscale Investments in terms of Bitcoin holdings.
  • Spot Bitcoin ETF momentum is growing with a visible impact on BTC price.

The competition amongst issuers of the spot Bitcoin Exchange-Traded Fund fighting for Bitcoin dominance is intensifying as BlackRock inc’s iShares Bitcoin Trust (IBIT) gets close to being equal to Grayscale’s Bitcoin Trust (GBTC). 

Recent data from Bitcoin ETF tracker Apollo reveals that the amount of Bitcoin held by IBIT is getting close to the amount held by GBTC with only a 50,000 BTC difference. The difference reflects outflows on Grayscale’s GBTC as against inflows for BlackRock’s IBIT.

Fierce Competition Between BlackRock IBIT and GBTC 

According to the statistics from Apollo, BlackRock’s IBIT is pegged at 266,587 BTC, valued at approximately $18.79 billion. On the other hand, Grayscale’s GBTC stands at 315,941 BTC, valued at about $22.27 billion. 

Therefore, in comparison to GBTC, BlackRock’s IBIT is only 49,354 BTC short. With an average weekly acquisition rate of 20,120 BTC, BlackRock is rapidly closing the gap on GBTC. 

While BlackRock’s IBIT is seeing huge inflows, Grayscale’s GBTC is bleeding with an average of 22,620 BTC sell-off recorded per week, closing the gap between the two asset managers. GBTC, which held 619,000 BTC during its launch in January has seen its Bitcoin ETF reserve plummet to half its value due to enormous outflows since day one.

If this trend continues, BlackRock is on track to overtake Grayscale as the Bitcoin ETF with the most BTC holdings within a few weeks. Furthermore, this would be the most notable milestone for IBIT since the ETF began with only 228 BTC holdings on January 10. As previously reported by Crypto News Flash, IBIT has emerged as one of the top 3 ETFs in the market as it approaches $20 billion in assets.

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Meanwhile, IBIT has added five major authorized participants (APs), including Goldman Sachs, Citadel Securities, and Citigroup, in a move towards enhancing liquidity. These new additions join current participation from Jane Street Capital, JPMorgan Chase, Macquarie, and Virtu Americas.

Per Crypto News Flash’s earlier announcement, BlackRock’s rise in the Bitcoin market is especially notable because it recently overtook renowned corporate investor MicroStrategy. With 205,000 BTC worth $14 billion, MicroStrategy currently follows behind Grayscale and BlackRock in the quest for Bitcoin dominance.

The growing popularity and competitiveness of Bitcoin ETFs, as well as the flow of assets between them, point to a shift in investor preferences and market trends. It could indicate an institutional preference for Bitcoin investment.

Resurgence in Bitcoin ETF Inflows

On Wednesday, Bitcoin ETFs saw a substantial increase in inflows after two days of outflows. The comeback was especially notable given Monday’s record-breaking outflow of $223.8 million, the highest in Bitcoin ETF history.

According to the details, IBIT, Fidelity Wise Bitcoin Fund (FBTC), Ark 21Shares ETF Trust (ARKB), and others recorded inflows totaling $123.7 million. Furthermore, GBTC outflows plummeted to a minimum of $17.5 million, as per Farside UK data. 

Notably, the performance of a Bitcoin ETF has been linked to the price of BTC since its introduction. Bitcoin has yielded returns of around 140% since the year began. As of the time of writing, Bitcoin is up 0.4% and is trading at $70,570 with its market cap standing at $1.3 trillion, and a trading volume of $29 billion.

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