BlackRock’s IBIT Nears Parity with Grayscale’s GBTC in AUM Race
The BlackRock iShares Bitcoin Trust (IBIT) is swiftly closing the gap with Grayscale’s Bitcoin Trust (GBTC) in assets under management (AUM), now standing at just under $4 billion.
With IBIT currently holding $18.1 billion and GBTC at $21.9 billion, the difference has significantly narrowed from $6 billion last week, signaling a rapid convergence. Industry analysts anticipate IBIT potentially surpassing GBTC’s AUM by the end of this month, fueled by its popularity surge since receiving SEC approval in January. IBIT, backed by BlackRock, the world’s largest asset manager, offers competitive fees starting at 0.12% for the first 12 months and 0.25% thereafter.
However, GBTC faces challenges as investors migrate to cheaper alternatives due to its 1.5% fee structure. Additionally, GBTC grapples with frequent share redemptions as failed crypto companies seek funds amid bankruptcy proceedings, resulting in significant outflows from the trust. Despite this, Grayscale CEO Michael Sonnenshein indicates that the outflows are approaching equilibrium, suggesting potential stabilization in the near future.
Clever Robot News Desk 15th April 2024
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