Race To Bitcoin Supremacy: BlackRock’s ETF Set To Surpass GBTC In Just 3 Weeks

The Bitcoin held in BlackRock’s regular Bitcoin ETF might surpass the Bitcoin managed by Grayscale’s GBTC in about three weeks if things stay the same.

Right now, BlackRock’s Bitcoin ETF has 238,500 Bitcoin, which is worth $15.5 billion. They say they’re getting about $274 million in new Bitcoin daily, which adds up to around 4,120 Bitcoin daily.

On the other hand, Grayscale’s Bitcoin Trust (GBTC) still has roughly 350,252 BTC, worth about $23 billion. But they’ve lost around $277 million daily for the past two weeks, with about 4,140 BTC leaving the trust daily.

GBTC outflows ramped up last week. Source: FarSide Investors

If there are no significant shifts in the rate of incoming and outgoing funds, BlackRock might surpass Grayscale in total Bitcoin holdings by April 11.

This milestone could be reached even sooner if BlackRock’s inflows revert to the previous week’s daily average of 7,200 BTC, potentially leading to the switch happening in 10 days.

On his CryptosRUs channel, YouTuber George Tung stated in a video on Mar 20, ‘ Mar 20kRock is poised to surpass Grayscale soon. I predict it will occur within the next two weeks.’

If BlackRock beats Grayscale, it will officially be the big boss holder of BTC worldwide.

Bitcoin Outflows Prompt Volatility Concerns

On March 18, GBTC experienced an astounding $643 million net outflows, marking its most significant single-day loss in recorded history.

In the subsequent days, although the outflows moderated somewhat, the notable increase in outflow volume prompted several analysts to caution about the possibility of downward price volatility in the BTC market.

Eric Balchunas, a seasoned ETF analyst at Bloomberg, expressed minimal concern regarding the outflows driven by GBTC. He anticipated that the departure of funds could cease almost entirely within the coming weeks.

Furthermore, Balchunas speculated that a significant portion of the outflows observed last week stemmed from the bankruptcies of cryptocurrency companies like Genesis and Digital Currency Group, attributing this trend to their substantial size and consistent presence in the market.

On March 10, BlackRock’s Bitcoin ETF surpassed MicroStrategy’s cryptocurrency holdings regarding spot BTC volume. At the time of reporting, MicroStrategy’s balance sheet reflected ownership of 214,246 BTC, following an additional purchase of 9,000 BTC on March 19.

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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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