BlackRock's Bitcoin ETF is on the verge of surpassing Grayscale's GBTC in total crypto holdings.
BlackRock's Bitcoin ETF Poised to Surpass Grayscale's GBTC in Total Holdings
The amount of Bitcoin in BlackRock's spot Bitcoin ETF may overtake Grayscale's GBTC within the next three weeks, assuming no significant changes in current flows, Cointelegraph reported.
As of March 22, BlackRock's Bitcoin ETF held 238,500 Bitcoin (BTC) on its books, worth $15.5 billion at current prices. However, it boasted an average daily inflow of approximately $274 million, or roughly 4,120 new Bitcoins entering the fund daily.
Meanwhile, Grayscale's Bitcoin Trust (GBTC) reports that it still holds approximately 350,252 BTC worth $23 billion at current prices. Over the last two weeks, it has had an average daily outflow of approximately $277 million, or roughly 4,140 BTC.
Assuming no significant changes in the rate of inflows and outflows, BlackRock could surpass Grayscale in terms of total Bitcoin holdings by April 11.
This date could be even closer if BlackRock's inflows return to the previous week's daily average inflow of 7,200 Bitcoin, implying that the flip could occur in 10 days. If BlackRock surpasses Grayscale, it will become the world's largest institutional holder of Bitcoin.
GBTC Records Record $643 Million Outflow Amid Bitcoin Price Volatility Concerns
On March 18, GBTC notched a staggering $643 million net outflows, its largest day of bleeding on record.
While the flows increased slightly in the following days, the increased volume of outflows prompted several analysts to warn of potential downward volatility in Bitcoin's price.
Senior Bloomberg ETF analyst Eric Balchunas was unconcerned about the GBTC-led outflows, predicting the exodus would be almost complete within the next few weeks.
Blachunas also speculated that most of last week's outflows were caused by the bankruptcies of crypto firms such as Genesis and Digital Currency Group, citing their "size and consistency."
On March 10, BlackRock's spot Bitcoin ETF officially surpassed MicroStrategy's holdings in the cryptocurrency. At the time of publication, MicroStrategy had 214,246 BTC on its books after purchasing an additional 9,000 BTC on March 19.
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