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BlackRock’s IBIT Challenges Grayscale’s Dominance
BlackRock’s IBIT is making significant strides in the Bitcoin ETF market, posing a challenge to Grayscale’s dominance. Let’s delve into the latest developments:
IBIT’s Growth in the Spot Bitcoin ETFs Market
- IBIT currently holds $19 billion worth of Bitcoin, capturing a market share of 32.6%.
- This positions IBIT closely behind Grayscale’s Bitcoin Trust (GBTC), which holds a 36.8% market share.
- Since its approval on January 10, IBIT has shown remarkable growth, with its Bitcoin holdings increasing by over 10,200%.
Market Share Comparison
BlackRock’s IBIT now holds 272,844 BTC, with a daily issuance of 900 BTC. Tomorrow, the supply will halve to 450 Bitcoin per day, impacting market dynamics.
Grayscale’s Decline and IBIT’s Rise
Grayscale’s market share has decreased significantly following the conversion of GBTC into an ETF. Its holdings have dropped by over 45%, while IBIT’s impressive performance has sparked M&A discussions.
Market Sentiment and Fee Structure
- IBIT’s net inflows of $866 million on March 13 indicate a positive market sentiment towards BlackRock.
- Grayscale’s high trading fee of 1.5% could affect patronage, while IBIT charges a modest 0.25% fee.
Volatility and Investor Behavior
Recent data shows that the spot Bitcoin ETF market has experienced fluctuations, with net outflows recorded during a volatile week for Bitcoin. Despite challenges, IBIT’s growth trajectory remains noteworthy.
Overall, the competition between BlackRock’s IBIT and Grayscale in the Bitcoin ETF market continues to evolve, shaping the future of digital asset investments.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
