BlackRock Spot Bitcoin ETF Prepares To Overthrow GBTC Dominance For The First Time

Key Points:

• BlackRock spot Bitcoin ETF is set to overtake Grayscale’s GBTC in assets by month-end.
• GBTC sees a significant single-day outflow of $79.38 million.
• Despite low inflows, analysts reassure normal market behavior for US spot Bitcoin ETFs.

BlackRock spot Bitcoin ETF (IBIT) is poised to overtake Grayscale’s GBTC in assets by the end of April, according to Bloomberg analyst Eric Balchunas.

Read more: Best Bitcoin ETFs To Buy In 2024

BlackRock Spot Bitcoin ETF to Surpass GBTC in Assets

Currently, GBTC maintains a $2.3 billion lead, but a potential surge in Bitcoin‘s value could affect this projection, with April 30 as a significant date to watch.

On the flip side, SoSoValue reported a substantial net outflow from spot Bitcoin ETFs yesterday, totaling $58.03 million. Notably, GBTC alone experienced a net outflow of $79.38 million in a single day, contributing to its historical net outflow of $16.46 billion.

Official data from Grayscale reveals that as of April 16, GBTC held 309,871.3833 BTC, with assets under management totaling $19,446,062,321.57 and circulating shares amounting to 347,880,100.

The BlackRock spot Bitcoin ETF stands out with a significant net inflow of approximately $25.78 million, marking it as the only spot Bitcoin ETF with consecutive inflows since its inception.

Analysts Reassure Normalcy Amidst Low Inflows in Bitcoin ETFs

Despite recent concerns about low inflows into US spot Bitcoin ETFs, Bloomberg ETF analyst James Seyffart reassures that this is normal market behavior.

He emphasizes that most days witness zero flows into ETFs, and significant inflows or outflows only occur when there’s a substantial demand-supply imbalance, indicating a routine market dynamic rather than a failure of the product.