Blackrock's IBIT and Grayscale's GBTC Engaged in Tight Race for Bitcoin ETF Supremacy
Over the course of the past ten trading days, spot bitcoin exchange-traded funds (ETFs) have seen a remarkable influx of over a billion U.S. dollars in net inflows. Each day during this period has witnessed a positive influx of funds. The most recent trading day alone recorded net inflows of $251.9 million. Out of the 11 ETFs, five experienced inflows, while GBTC, BTCO, BRRR, EZBC, and BTCW remained steady with no losses or gains. However, on May 22 and 23, GBTC faced net outflows, while the rest of the ETFs saw inflows or neutral numbers.
Blackrock's IBIT has consistently seen inflows for the majority of this ten-day period. Prior to this, the fund had a few days with no inflows or outflows. The race for bitcoin (BTC) reserves between GBTC and IBIT is becoming increasingly close. Over time, GBTC has been reducing its BTC holdings, while IBIT has been acquiring more through inflows. In fact, a significant portion of the BTC reductions in GBTC's balance sheet may have been acquired by IBIT.
As of the latest data recorded on May 24, Blackrock's IBIT holds approximately 287,167.74 BTC. In contrast, Grayscale's Bitcoin Trust held 617,079.99 BTC on January 12, 2024. In the 137 days since then, GBTC has experienced multiple days of outflows, resulting in a divestment of 328,039.47 BTC worth $22.38 billion. As of May 24, 2024, GBTC currently holds approximately 289,040.52 BTC, valued at $19.72 billion.
With GBTC's consistent outflows and IBIT's inflows, the gap between the two funds is narrowing. As of the same date, IBIT's BTC holdings are worth $19.59 billion, just slightly less than GBTC's reserves. To catch up to GBTC, IBIT only needs to amass 1,872.78 BTC. If GBTC continues to shed BTC, IBIT will catch up even faster.
The intensifying battle for dominance in the bitcoin ETF realm reveals that Blackrock's IBIT is rapidly closing in on Grayscale's GBTC. This is primarily due to IBIT's consistent inflows and GBTC's persistent outflows. This shift in market dynamics could potentially reshape the landscape of bitcoin investment vehicles, positioning Blackrock at the forefront.
Blackrock has a history of reigning supreme in the realm of exchange-traded funds. Their Ishares ETFs are among the largest and most actively traded worldwide. The Ishares Gold Trust (IAU) is one of the largest gold-backed ETFs, while the Ishares Core S&P 500 ETF (IVV) tracks the S&P 500 index. In the near future, the Ishares Bitcoin Trust (IBIT) could become the largest spot bitcoin ETF globally.
What are your thoughts on IBIT closing in on GBTC's bitcoin reserves? Share your opinions in the comments section below.