The Race is On: BlackRock’s ETF Poised to Beat GBTC in Bitcoin Holdings

Last Updated on March 25, 2024

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BlackRock logo is seen at its global headquarters in New York City. Source: Tada Images - stock.adobe.com

Key Takeaways:

  • BlackRock’s newly launched spot Bitcoin ETF is nearing the Bitcoin holdings of the Grayscale Bitcoin Trust (GBTC), with a potential to become the largest institutional holder of Bitcoin by April 11, given current trends.
  • The ETF has seen a substantial daily increase in Bitcoin holdings, with 238,500 Bitcoins valued at $15.5 billion, compared to GBTC’s decreasing holdings, currently at 350,252 Bitcoins worth approximately $23 billion.
  • This shift in institutional Bitcoin holdings marks a significant moment in the cryptocurrency landscape, with implications for market dynamics and investor strategies, amidst predictions of market impacts and the stabilization of outflow trends.

BlackRock’s recently launched spot Bitcoin ETF is on the verge of eclipsing the Bitcoin holdings of the Grayscale Bitcoin Trust (GBTC) in just over two weeks, given the current trends continue without significant change.

This noteworthy development signals a potential shift in the landscape of institutional Bitcoin holdings.

As of the last update, BlackRock’s ETF boasts 238,500 Bitcoins, valued at $15.5 billion, with a remarkable daily increase of about 4,120 Bitcoins ($274 million in value).

In contrast, Grayscale’s GBTC, previously the front-runner in institutional Bitcoin investments, currently holds 350,252 Bitcoins, worth approximately $23 billion, but is seeing a daily decrease of 4,140 Bitcoins (or $277 million in value) due to outflows.

The persistent inflow into¬†BlackRock’s ETF¬†and outflow from¬†GBTC¬†sets the stage for a historic shift by¬†April 11, should these trends persist.

Person holding cellphone with logo of US crypto currency company Grayscale Investments LLC on screen in front of webpage.
Source: Timon – stock.adobe.com

Remarkably, if BlackRock’s daily Bitcoin acquisition rate reverts to its previous week’s average of 7,200 Bitcoins, this overtaking could occur even sooner, within 10 days.

This anticipated event has caught the attention of cryptocurrency enthusiasts and investors, with predictions circulating about BlackRock’s impending status as the world’s largest institutional holder of Bitcoin.

This shift is particularly significant in light of Grayscale’s recent record outflow day, which saw¬†$643 million¬†leave the trust, sparking discussions on potential market impacts.

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Despite concerns over the market volatility these movements might cause, experts like Bloomberg’s Senior ETF Analyst Eric Balchunas suggest that the outflow trend from GBTC could stabilize soon, potentially easing fears of a Bitcoin price downturn.

Speculation abounds that recent outflows, particularly pronounced last week, could be linked to the financial troubles of major crypto firms.

Adding to BlackRock’s achievements, its spot Bitcoin ETF surpassed MicroStrategy’s Bitcoin holdings earlier this month, marking another milestone as it advances in the Bitcoin space.

With MicroStrategy’s latest acquisition, it now holds 214,246 Bitcoins, highlighting the dynamic and competitive nature of institutional cryptocurrency investments.

About The Author

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Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.

With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.

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