BlackRock’s IBIT ETF set to flip GBTC after Bitcoin halving: Bloomberg analyst

BlackRock’s iShares Bitcoin Trust (IBIT) is expected to flip Grayscale Bitcoin Trust (GBTC) before the end of the month, according to analysts.

“GBTC currently holds a $2.3 billion lead,” Bloomberg Intelligence analyst Eric Balchunas wrote on Twitter. “BTC’s massive rally may be slightly delayed, but I think 4/30 is a solid over/under date.”

For context, this time last week the gap between the two largest spot Bitcoin ETFs in the U.S. was about $4 billion.

Even before it was approved, BlackRock’s IBIT was framed as an extortionist who would deprive Grayscale of its long-standing funds.

GBTC began trading in 2013 but was only available to accredited and institutional investors. As of November 2021, the fund’s assets under management exceeded $43 billion. However, around the same time the following year, amid widespread turmoil in the cryptocurrency market, the fund’s AUM fell below $10 billion.

When the U.S. Securities and Exchange Commission approved converting GBTC into a spot Bitcoin ETF in January, the fund’s assets stood at $28.6 billion. GBTC’s AUM fell to $19.5 billion as investors turned to competing ETFs that offered lower fees.

Earlier this month, Grayscale CEO Michael Sonnenshein pointed to bankruptcy-related sales of FTX and other cryptocurrency companies, noting that “GBTC was collateral inside some of the bankruptcy properties around the cryptocurrency ecosystem,” and that the step It was claimed that: Mostly “behind us”.

It is worth pointing out that the value of Grayscale’s assets under management fluctuates with the price of Bitcoin. Nonetheless, despite the recent period of Bitcoin price cooling, BTC is up 35% since January 11th.

As of this writing, BTC is changing hands just north of $63,000.

The cooling after hitting new all-time highs last month was enough for the Bitcoin ETF to see outflows for three days in a row. About $58 million worth of shares were redeemed yesterday, according to Coinglass. This brings the three-day total (Friday, Monday and Tuesday – traditional markets are not open on weekends) to $149 million.

Bitcoin traders will no doubt be watching to see how the next halving event plays out in the markets. The Bitcoin halving, which will reduce the rewards paid to Bitcoin miners from 6.25 BTC to 3.125 BTC, is currently expected to take place late Friday, April 19th. The date change greatly surprised 4/20 observers who were calculating. A day to celebrate Bitcoin and Marijuana on the same day.