BlackRock's Spot Bitcoin ETF Could Outperform GBTC Within Three Weeks

BlackRock's spot Bitcoin ETF could take the lead in its asset class within three weeks, surpassing Grayscale Investments' convertible fund.

As of March 22, 2024, the iShares Bitcoin Trust (IBIT) had 238,500 BTC on its balance sheet, worth $15.5 billion, according to SoSo Value. The average daily capital inflow into the crypto fund remains at 4120 BTC or $274 million.

YouTuber George Tung estimates that if this pace continues, IBIT will become the largest spot Bitcoin ETF within three weeks. It will bypass the Grayscale Bitcoin Trust (GBTC), which has $22.2 billion in assets at the time of writing.

In contrast to IBIT's ever-increasing AUM, rival GBTC continues to shed reserves. Over the past two weeks, the average daily capital outflow from this investment product was 4140 BTC - $277 million.

If the current trend continues, BlackRock's cryptocurrency ETF will come out on top in terms of AUM by April 11, 2024, the blogger said. According to him, GBTC is capable of losing its leadership in this indicator even earlier.

In the previous week, IBIT showed an average daily inflow of 7,200 BTC. If it returns to this figure, it will take only ten days to outpace GBTC, Tung believes.

It is worth noting that on March 13, 2024, the daily capital inflow into spot Bitcoin ETFs exceeded $1 billion. However, after reaching a record level, the figure began to significantly decline. For example, the outflow of funds in the period from March 18 to March 22, 2024 amounted to $1.81 billion.

Bloomberg analyst Eric Balchunas suggested that the withdrawal of capital from the sector is related to the Genesis bankruptcy case and the litigation against Digital Currency Group. In his opinion, the net outflow of funds could dry up completely within a few weeks.