BlackRock’s spot Bitcoin ETF could surpass Grayscale’s GBTC in terms of the amount of Bitcoin held within the next three weeks, assuming there are no significant changes in the current flow of funds.
As of March 22, BlackRock’s Bitcoin ETF held 238,500 Bitcoin, which is valued at $15.5 billion at current prices. The fund has been experiencing an average daily inflow of approximately $274 million, equivalent to around 4,120 Bitcoin per day.
On the other hand, Grayscale’s Bitcoin Trust (GBTC) still holds an estimated 350,252 Bitcoin, worth $23 billion. However, it has been facing an average daily outflow of approximately $277 million, or around 4,140 Bitcoin per day, over the past two weeks.
If the inflow and outflow rates remain consistent, BlackRock could surpass Grayscale in terms of the total amount of Bitcoin held by April 11. This timeline could be even shorter if BlackRock’s inflows return to the previous week’s average of 7,200 Bitcoin per day, which would result in the flip happening in just 10 days.
YouTuber George Tung expressed his belief that BlackRock will soon overtake Grayscale in a video on his CryptosRUs channel.
If BlackRock does surpass Grayscale, it will become the largest institutional holder of Bitcoin in the world.
Last week, GBTC experienced a significant increase in outflows, reaching a record high of $643 million. Although the outflows slightly decreased in the following days, the substantial volume of outflows raised concerns about potential downward volatility in Bitcoin’s price.
However, senior Bloomberg ETF analyst Eric Balchunas is not overly worried about the outflows led by GBTC and predicts that the exodus could come to an end within the next few weeks.
Balchunas also speculates that the majority of last week’s outflows were a result of bankruptcies in crypto firms such as Genesis and Digital Currency Group, which had significant holdings.
On March 10, BlackRock’s spot Bitcoin ETF officially surpassed MicroStrategy’s holdings of the cryptocurrency. As of now, MicroStrategy holds 214,246 Bitcoin after purchasing an additional 9,000 Bitcoin on March 19.
In related news, Trezor CEO warned that Bitcoin ETFs make Coinbase a target for hackers and governments.