BlackRock’s spot Bitcoin ETF could potentially surpass Grayscale’s GBTC in terms of total Bitcoin holdings within the next three weeks, assuming there are no significant changes in current flows. As of March 22, BlackRock’s iShares Bitcoin Trust ETF held 238,500 Bitcoin, valued at $15.5 billion, with average daily inflows of approximately $274 million and around 4,120 new Bitcoin entering the fund each day.
On the other hand, the Grayscale Bitcoin Trust (GBTC) ETF currently holds an estimated 350,252 BTC, worth $23 billion, but has been experiencing average daily outflows of approximately $277 million or around 4,140 BTC daily over the past two weeks. GBTC outflows increased significantly last week.
Based on the current rate of inflows and outflows, BlackRock could potentially surpass Grayscale in terms of total Bitcoin holdings by April 11. However, if BlackRock’s inflows were to return to the previous week’s average of 7,200 Bitcoin per day, the flip could happen in just 10 days.
Popular YouTuber George Tung, in a video on his CryptosRUs YouTube channel, stated that BlackRock is likely to surpass Grayscale soon. If this happens, BlackRock will become the world’s largest institutional holder of Bitcoin.
It is worth noting that GBTC experienced a record-breaking $643 million in net outflows on March 18. Although the outflows have eased slightly since then, the significant volume of outflows has raised concerns about potential downward volatility in the price of Bitcoin. However, Bloomberg ETF analyst Eric Balchunas remains optimistic and predicts that the outflows led by GBTC could come to an end within the next few weeks. He also speculates that the majority of last week’s outflows may be attributed to bankruptcies of crypto firms such as Genesis and Digital Currency Group due to their size and consistency.
On March 10, BlackRock’s spot Bitcoin ETF surpassed MicroStrategy’s holdings of the cryptocurrency. Currently, MicroStrategy holds 214,246 BTC after purchasing an additional 9,000 BTC on March 19.
In related news, the CEO of Trezor, a cryptocurrency hardware wallet manufacturer, warns that Bitcoin ETFs make platforms like Coinbase attractive targets for hackers and governments.