BlackRock’s Spot Bitcoin ETF to Outplay GBTC as New Investors Flock the Crypto Industry

BlackRock's spot Bitcoin ETF has performed impressively following its approval in January. The ETF, known as iShares Bitcoin ETF (IBIT) could surpass Grayscale's GBTC in the amount of held Bitcoin.

If there are no changes in the current flows of the ETFs, IBIT might overtake GBTC within three weeks.

Blackrock's ETF Accumulates More Bitcoin Tokens In Its Holding

According to data from BlackRock's site, its Bitcoin ETF has reached 238,500 BTC on record as of March 22. In line with the current market prices, the value is about $15.5 billion.

Further, IBIT has recorded an average inflow of almost $274 million daily. This translates to approximately 4,120 fresh Bitcoin tokens into the fund each day.

On the other hand, Grayscale's Bitcoin ETF (GBTC) has recorded a negative trend over the past few days. Farside Investors posted the overall Bitcoin ETF Flows as of March 22 on X.

According to data, some ETFs recorded inflows, except GBTC, which saw an outflow of 169.9 million.

Moreover, the data revealed that GBTC holds an estimated 350,252 BTC worth $23 billion at current market prices and has recorded more outflows over the past fortnight.

Based on the data, GBTC saw an average outflow of almost $277 million every day, which translates to 4,140 BTC each day.

If the flows remain consistent without any reversal, BlackRock will amass more Bitcoin in its holding, surpassing Grayscale's GBTC by April 11.

Moreover, the overtaking date could even be sooner than the estimated three weeks ahead if BlackRock ETF regains its previous daily average inflow of 7,200 Bitcoin.

Such a flip will bring the overtake within the next 10 days.

Reactions On The Potential Flip In BTC's Largest Institutional Holder

As the largest global asset manager, BlackRock has garnered a lot of confidence in the industry. Many believe the company will be the lead following its venture into spot Bitcoin ETF.

In a video on his CryptosRUs channel on March 20, prominent YouTuber George Tung expressed confidence in BlackRock.

Tung stated:

BlackRock is going to flip Grayscale soon. I say within the next two weeks, it's going to happen."

The YouTuber noted that Grayscale's massive outflows have impacted the overall trend for ETFs.He highlighted that BlackRock's IBIT has countered Grayscale sales through notable inflows.

By overtaking Grayscale, BlackRock will officially emerge as the largest global institutional holder of Bitcoin. Notably, GBTC saw a total outflow of $643 million on March 18, hitting its peak on record. Afterward, the outflows dropped slightly in the following days.

However, several analysts and experts reacted to the overall high volume of outflows from Bitcoin ETFs. They warned about the possibility of a drastic decline in Bitcoin's price.

A senior Bloomberg ETF analyst, Eric Balchunas, predicted that outflows could end completely in the next few weeks. Balchunas believed that a huge part of the net outflows last week came from Genesis and Digital Currency Group.

According to him, the size and consistency of the bankrupt crypto companies contributed to their significant outflows. As such, the analyst wasn't overly concerned about it but believed the trend could end soon.

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