Bloomberg’s senior ETF analyst, Eric Balchunas, has predicted that BlackRock’s $IBIT spot Bitcoin exchange-traded fund will overtake Grayscale’s Trust Bitcoin Shares ($GBTC) by the end of the month.
Eric Balchunas, in a social media post on Wednesday, April 17, drew attention to the rapidly changing landscape of bitcoin ETFs. He highlighted BlackRock’s $ IBIT, which is closing in on Grayscale’s $GBTC, with the gap between the two narrowing from $ 4 billion to just $2.3 billion in a week.
While Balchunas noted that a massive surge in BTC price could be delayed, he believes that by the end of April, BlackRock’s $IBIT should be leading the pack of Spot Bitcoin ETFs in the US. His post also included a chart showing the difference between $GBTC and $IBIT equities and revealed that a consistent net flow of the ETFs will see $IBIT overtaking $GBTC much sooner.
Meanwhile, according to data for the trading day ending April 16, 2024, Grayscale continued its trend of significant outflows since January. The ETF saw $79.4 in outflows from its portfolio. Meanwhile, $iBIT attracted over $25million to its portfolio.
BlackRock’s iBIT has been steadily gaining inflows since March despite the market stagnation, a testament to the increasing trust investors are placing in the fund, providing a sense of security in its performance.
READ MORE:
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$GBTC, which launched in 2013 as a Trust Fund trading solely in over-the-counter (OTC) markets, witnessed substantial expansion until its assets under management (AUM) surpassed $43 billion in November 2021. Following the approval of Spot Bitcoin ETFs by US authorities on January 10, $GBTC transitioned into a spot Bitcoin ETF with an AUM of approximately $28.6 billion. However, its AUM has continued to decline as investors either withdraw from the crypto market entirely or explore alternative ETF options. Some have attributed the exodus of investors from the fund to the Fund’s high fees.
ALSO READ: Grayscale CEO Questions the Future of New Bitcoin ETFs Amid Fee Competition
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