Bitcoin – ETFs push towards new record
What does Bitcoin ETF have in store for us this week? New record in sight if Grayscale doesn't come and spoil the party?
Bitcoin – Demand vs Supply
Last week, ETFs swallowed a net 7,376 bitcoins. Or 120% of the bitcoins that were created by miners at the same time.
Grayscale's GBTC ETF spoiled the party again with outflows representing 10,867 bitcoins. Note also that the ARK Capital ETF has, for the first time, suffered net weekly outflows equivalent to 1,154 bitcoins.
Overall, BlackRock is still in the lead with 264,000 BTC held on behalf of its clients. That is to say 1.35% of all bitcoins in circulation, or almost 19 billion dollars.
Fidelity is second with 150,000 BTC (~$11 billion). Ark completes the podium with 43,000 BTC.
Unfortunately, outflows from the GBTC ETF are currently preventing us from reaching $100,000. The following chart is a mirroring of the amounts of BTC held by Grayscale (red) and BlackRock (green).
This near-perfect symmetry suggests that a good portion of the BTC in the GBTC ETF is flowing directly into the BlackRock ETF. As a reminder, Grayscale charges management fees more than 6 times higher than those of BlackRock, hence the exodus of its clients.
In short, it is not impossible that a good part of Blackrock's bitcoins mainly come from a transfer from the GBTC ETF. If so, net inflows into the ETFs are unlikely to make a dramatic jump once the GBTC ETF is empty.
