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BlackRock’s new popular Bitcoin ETF product is quickly catching up to Grayscale in terms of assets under management (AUM), with the gap now less than $4 billion.
Starting today, BlackRock iShares Bitcoin Trust (IBIT) It holds $18.1 billion. From assets. Grayscale Bitcoin Trust (GBTC) Has $21.9 billion. That’s a difference of $3.8 billion.
Last week, the difference in operating assets between the two funds was $6 billion. The gap is closing rapidly.
Experts and Industry Observers saiddecryption Last week, IBIT was scheduled to flip GBTC by May, but if things continue, it could happen as early as this month.
IBIT has gained huge popularity since receiving approval for trading from the U.S. Securities and Exchange Commission in January. This product is powered by some of the world’s largest and most prestigious wealth managers. There’s also a low fee of 0.12% for the first 12 months and 0.25% thereafter.
GBTC may be a big name in the cryptocurrency world, given the long term before converting to a proper spot ETF, but it comes with a 1.5% fee. That means investors are paying cash to move to cheaper products, experts say. saiddecryption.
The fund is also redeeming shares at a rapid pace as a failed cryptocurrency company with exposure to cash from recovering products for former customers as part of its bankruptcy proceedings.
As a result, hundreds of millions of dollars were withdrawn from the fund. But Grayscale CEO Michael Sonnenshein said on wednesday Reuters Interviewees said the outflow was getting closer to “equilibrium.”
Editor: Andrew Hayward
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The views and opinions expressed by the author are for information purposes only and do not constitute financial, investment or other advice.
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