BlackRock's assets under management reach $10 billion, GBTC outflows slow down
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BlackRock's assets under management reach $10 billion, GBTC outflows slow down
At the current pace, IBIT will surpass GBTC in BTC holdings within 37 days.
Navigating Web3 tides with focused insightsSource: Bitcoinist
Compiled by: Blockchain Knight
Data from the fourth day of U.S. spot BTC ETF trading has been finalized, and once again, the numbers are impressive.
Bloomberg analyst Eric Balchunas shared final figures for the fourth day of spot BTC ETFs via X, highlighting the strong performance of newly approved spot BTC ETFs—excluding Grayscale's conversion of its GBTC trust into an ETF—all ten approved funds collectively known as the "New Nine."
Balchunas commented on the rapid success of these ETFs, stating: "Day four was solid—the New Nine pulled in $914 million on Wednesday, bringing rolling net inflows to $1.2 billion, their best day yet, surpassing GBTC’s outflows of $450 million. The 'nine-pack' has now attracted $3 billion in just four days, with trading volume reaching $5.4 billion (abnormally high)."
Investor enthusiasm has particularly favored BlackRock’s IBIT, which has already accumulated over $1 billion, followed closely by Fidelity’s FBTC and Bitwise’s BITB.
However, this robust growth in new ETFs does not entirely stem from fund flows leaving Grayscale's GBTC.
Balchunas explained: "Even if every dollar flowing out of GBTC went straight into them—which it isn’t—that would still be normal. For decades, ETFs have drawn money away from higher-cost mutual funds, and that process helped ETFs grow and gain momentum, attracting millions in new investments."
"So get used to this pattern—the hydra isn’t just stealing from GBTC; anything high-cost is now vulnerable. That’s the reality."
Regarding specific questions about IBIT seeing inflows exceeding trading volumes on day four, Balchunas noted: "Some large customized creations occurred, suggesting significant institutional trading activity."
The success of these spot BTC ETFs extends beyond their own category. Balchunas pointed out that just four days after official approval, two of them ranked among the top five most successful ETF launches ever, and three made it into the top ten.
Only IVV, QQQ, and VOO achieved higher asset under management (AUM) accumulation during their first week.
Alex Thorn, head of research at Galaxy Research, confirmed that selling pressure on Grayscale’s GBTC has eased.
He reported earlier today: "This morning, Grayscale transferred 9,839 BTC to Coinbase Prime to settle yesterday’s redemptions (T+1 settlement)."
Notably, this is significantly less than the previous day, when Grayscale moved 18,000 BTC (worth $770 million) to Coinbase Prime to cover Tuesday’s BTC redemptions.
This observation is crucial, given the substantial outflows from Grayscale’s GBTC since regulators approved competing spot BTC ETFs—driven by factors such as elimination of its net asset value discount and lower fees offered by rival ETFs.
However, whether GBTC outflows will continue to slow in the coming days and weeks remains to be seen. While inflows into other spot BTC ETF issuers (i.e., the "New Nine") have fully offset these outflows, BTC price action has remained somewhat stagnant, hovering below $43,000 in recent days.
Meanwhile, crypto assets analyst James Van Straten highlighted a striking comparison between BlackRock’s pace of acquiring BTC through IBIT and the rate of outflows from Grayscale.
He said: "This is insane. At current rates, IBIT will surpass GBTC in BTC holdings within 37 days. BlackRock would then hold approximately 250,000 BTC, exceeding Grayscale’s expected holding of around 240,000 BTC."
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