BlackRock to Overtake Grayscale Amid Eight Days of Bitcoin ETF Inflows

7Ary...USep

23 May 2024

While the GBTC outflows resume again, BlackRock's Bitcoin ETF IBIT saw strong surge in inflows once again. BTC price hovers around $69,000 for now.

HIGHLIGHTS

BlackRock's IBIT is close to taking over Grayscale's GBTC in AUM.
BlackRock IBIT inflows rise while outflows from GBTC resume again.

While the entire crypto community remains focused on the approval of the spot Ethereum ETFs, institutional investors continue to increase their exposure to the Bitcoin ETFs. The U.S. spot Bitcoin ETFs have recorded eight consecutive days of outflows on Wednesday, May 22.

BlackRock To Overtake Grayscale

On May 22, the net inflow of Bitcoin spot ETF amounted to US$154 million, extending the streak of net inflows for eight consecutive days, per the data from Farside Investors.
However, on Wednesday, Grayscale ETF GBTC experienced an outflow of $16.0914 million, while BlackRock ETF IBIT recorded a single-day inflow of $91.9527 million. Additionally, Fidelity ETF FBTC saw an inflow of $74.572 million on the same day.
With this development, BlackRock is on the verge of overtaking GBTC as the largest Bitcoin ETF with the most assets under management. On the other hand, Bitcoin ETFs have been hitting another milestone while accumulating more than 850,000 Bitcoins so far. Similarly, the global ETFs are close to accumulating more than 1 million BTCs.

Growing Demand for Bitcoin ETFs Worldwide

On Wednesday, May 22, WisdomTree, a leading global asset manager, has achieved a noteworthy milestone in the cryptocurrency investment arena. The company revealed that it has received authorization from the U.K. Financial Conduct Authority (FCA) to introduce Exchange-Traded Products (ETPs) for Bitcoin and Ethereum on the London Stock Exchange (LSE).
Bloomberg strategist Eric Balchunas noted that while the news holds true only physically backed Bitcoin ETFs are permitted, with two from WisdomTree set to commence trading initially. Additionally, a retail ban remains in effect, underlining the regulatory nuances surrounding these investment products.
According to Glassnode analytics, the Bitcoin market has undergone a period of cooling off following months of notable distribution pressure. Despite modest capital inflows, the decrease in selling activity and a reduction in volatility indicate the potential for a significant market shift in the near future.

Ethereum Co-founder Cashing Out This ETH Price Rally, What’s Next?

Ethereum co-founder Jeffrey Wilcke has recently deposited 10,000 ETH to Kraken with over 24,000 deposits done since the beginning of 2024. ETH price remains stable.

HIGHLIGHTS

Ethereum co-founder Jeffrey Wilcke has deposited over 24,000 ETH in 2024 so far.
Ethereum whales have been watching from the sidelines the developments around spot Ether ETF.
Top players update their 19b-4 filings with the US SEC while removing staked ETH feature.

Ethereum’s native cryptocurrency ETH had a solid run-up earlier this week with the ETH price rallying all the way by 30% to over $3,800 levels. The recent ETH rally has been major due to the enthusiasm surrounding the possible approval of spot Ethereum ETF by the U.S. Securities and Exchange Commission.

Ethereum Co-founder Cashing Out

As per the on-chain data, Ethereum co-founder Jeffrey Wilcke has been reportedly cashing out on this rally.
According to recent data provided by SpotonChain, Ethereum co-founder Jeffrey Wilcke deposited a staggering 10,000 ETH (equivalent to approximately $37.38 million) to the cryptocurrency exchange Kraken at a rate of $3,738 per ETH, approximately two hours ago. This shows that the Ethereum co-founder has been cashing out his ETH holdings partially on the current rise.
Since the beginning of 2024, Wilcke has reportedly deposited a total of 24,300 ETH to Kraken, amounting to around $75.52 million at an average rate of $3,108 per ETH. Notably, his most recent deposit occurred prior to the significant surge in Ethereum’s price.
As of the latest data, Jeffrey Wilcke still retains ownership of 126,000 ETH, valued at approximately $473 million.

Spot Ether ETF Developments

Several Ethereum ETF issuers submitted their updated 19b-4 filings on Wednesday, as the US SEC is set to decide on the VanEck Ethereum ETF application later today. Although big players like Standard Chartered have announced that the Ether ETF approval would come this week, other market analysts believe that the first spot Ether ETF will come by late July or either early August.
On the other hand, it turns out that the recent ETH price rally remains largely retail driven and the Ethereum whales haven’t yet participated actively in this matter. They’re probably watching on the sidelines as to what happens with these Ether ETFs.