BlackRock’s IBIT Nears Grayscale Market Share Despite Inflows

BlackRock’s (NYSE:BLK)iShares Bitcoin Trust (NASDAQ:IBIT) is closing in on Grayscale’s dominance in the Bitcoin trust market, with impressive growth despite minimal inflows. According to data released on April 17, IBIT holds a significant market share of 32.6%, just trailing behind Grayscale’s Bitcoin Trust with 36.8%.

IBIT’s remarkable rise began since its approval on January 10, amassing $19 billion worth of Bitcoin, showcasing over 10,200% growth. With 272,550 BTC valued at $16.8 billion, IBIT needs about $2.2 billion more to match Grayscale’s holdings.

The decline in Grayscale’s market share followed the conversion of GBTC into an ETF, resulting in a reduction of its Bitcoin holdings by over 45% to 308,105 BTC.

Despite recent slowdowns in accumulation, IBIT’s net inflows of $866 million on March 13 contrast with GBTC’s $607 million outflows on March 19, indicating a shift in market sentiment favoring BlackRock. Moreover, IBIT’s lower fee of 0.25% compared to GBTC’s 1.5% could attract more investors.

However, the overall Bitcoin ETF market saw dwindling net inflows recently, with IBIT recording lower inflows of $73.4 million on April 15, amidst a volatile week for Bitcoin, which experienced a 9.54% price drop. Globally, Bitcoin investment products faced $110 million in outflows between April 12 and 17, suggesting investor caution amidst market volatility.

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