Blackrock Bitcoin ETF to Surpass Grayscale Soon; Just $2 Bln Gap Left

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Since the SEC’s approval, the Blackrock Bitcoin ETF has set new records and is poised to overtake Grayscale as the biggest Bitcoin investment fund in the world.

Blackrock Bitcoin ETF Inches Close to Surpass Grayscale

Based on Bloomberg’s report, the gap between Grayscale and BlackRock’s iShares Bitcoin Trust (IBIT) has narrowed down to roughly $2 billion. This means that BlackRock is now close enough in size to potentially surpass Grayscale as the world’s largest Bitcoin investment fund.

After GBTC suffered a loss of over $16 billion in value consecutively for 68 days, bringing its assets down to $19.4 billion, IBIT experienced a significant growth in assets. This was due to IBIT’s continuous absorption of funds for 68 days, resulting in a total asset value exceeding $17.3 billion.

Grayscale’s Capital Withdrawals

Over the past five days, investors have withdrawn a notable amount of capital, totaling $89.9 million, from Grayscale’s spot Bitcoin ETF (GBTC). Since the beginning of January, this trend has resulted in a substantial net withdrawal of approximately $1.6 billion.

Despite Grayscale’s initial lead in the Bitcoin ETF market, its dominance appears to be decreasing. Fidelity and BlackRock have been making significant strides since trading began. For instance, during the same week, these two companies saw net inflows of $37.3 million and $18.7 million respectively, helping alleviate liquidity concerns in the market.

Bitcoin ETF Set For a Steady Rise

In the broader cryptocurrency landscape, there’s a growing yet cautious acceptance among finance experts. Bitwise CEO, Hunter Horsley, noted that Bitcoin adoption by multifamily offices and RIAs has been quiet but significant. He added that leading financial institutions are secretly conducting extensive research on Bitcoin’s market potential.

Horsley responded to Bitwise’s cryptocurrency registration analysis this year, which uncovered a related trend among organizations. These groups have been quietly adding Bitcoin to their investments without announcing their plans to the public. The upcoming Bitcoin halving is expected to boost demand in the market, leading these registrants to make further adjustments accordingly.

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2024-04-20 04:21