After a modest start to the week, American Bitcoin ETFs picked up again in the second half of last week. On Thursday and Friday, the index funds each enjoyed more than $200 million in net inflows. For the past week, total net inflows are Data from Farside Investors thus to 484.5 million US dollars. The popular Bitcoin Trust from BlackRock (IBIT) was particularly strong, gaining an impressive $811.2 million alone. Meanwhile, BTC is trading at $71,900 at press time, up 6.3 percent in the past 48 hours.
Overall, Bitcoin ETFs are holding up Information from Dune already 834,600 BTC, which corresponds to 4.24 percent of the total supply currently circulating. The Bitcoin funds and especially the BlackRock product exceed all expectations, which is why even Larry Fink, CEO of the largest asset manager in the world, was “pleasantly surprised”. However, there was a special feature on Tuesday when, for the first time, it was not the GBTC that suffered the highest daily net outflows, but the ARK 21Shares Bitcoin ETF. Almost $88 million flowed from the fourth-largest BTC spot ETF from the US investment company Ark Invest, founded by Cathie Wood in 2014.
BlackRock versus Grayscale – flipping in sight
Nevertheless, the Grayscale Bitcoin Trust was once again primarily responsible for the capital outflows. Once launched as a pioneering product, GBTC lost $737.8 million last week, leaving its market share at just 39.1 percent. If Grayscale continues to lose Bitcoin at this rate, its BTC holdings would be completely used up in a few months, as BTC-ECHO reported. The high fees of 1.5 percent are considered the most important reason for the enormous capital outflows of the Grayscale ETF. Even in the event of a slowdown in BTC losses due to the prospect Fee reduction “Flippening” seems only a matter of time.
Just as the Grayscale product is losing steadily, BlackRock’s competition is gaining week after week. The gap is melting away; IBIT now holds over 257,200 Bitcoin and therefore has a market share of 30.8 percent. Since SEC approval on January 11, BlackRock’s Bitcoin ETF has seen a whopping $14.77 billion in net inflows. If IBIT continues to grow at the same pace and GBTC shrinks at the same rate, then ETF flipping could occur as early as the beginning of May. Everything indicates that the changing of the guard is imminent. You can find out whether the ETFs could run out of steam before the halving event in this BTC-ECHO article.
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