The BlackRock Bitcoin ETF currently holds more BTC than its long-standing rival, the Grayscale Bitcoin Trust.
And as K33 Research senior analyst Vetle Lunde pointed out on Twitter, “IBIT only took 96 days to catch up with GBTC’s massive lead.”
As of the close of U.S. markets on Tuesday, iShares Bitcoin Trust (IBIT) had 288,671 BTC and GBTC had 287,454. The reversal came after $105 million worth of outflows from GBTC and $102 million worth of inflows from IBIT on Tuesday, according to Coinglass.
At one point, analysts expected IBIT to close the gap faster than it actually did, and GBTC saw a brief surge in deposits, but that could be because traders were using the stock to short Bitcoin.
The news comes a day after the Bitcoin funds sector hit a major milestone, reaching 1 million BTC in total Bitcoin currently held. The total, tracked and calculated by HODL15Capital, includes not only the nine new US ETFs and the newly converted GBTC, but also German and Canadian ETFs, as well as a recently launched fund currently trading in Hong Kong.
Grayscale has maintained since trading of its spot Bitcoin ETF began in January that its flagship fund would not be resold to BlackRock.
In an April podcast interview, Grayscale's former CEO Michael Sonnenschein said the company expected a surge in outflows after the conversion and to compete directly with funds that charge much lower fees, but that it was reaching an “equilibrium.”
“We knew and expected some outflows before this happened,” he said at the time. “GBTC was collateral that was included as part of bankruptcy estates around the crypto ecosystem.” He said these liquidations were “forced.”
Even before a spot bitcoin ETF was approved to begin trading, it was clear that new entrants figured the easiest way to gain an advantage was to undercut GBTC's fees: GBTC charges 1.5%, while rival bitcoin ETFs charge up to 0.25%, and many funds offered even lower fees or no fees at all when they launched.
Grayscale recently announced that Sonnenschein would be stepping down from his position in August, but made no mention of GBTC.
