- BlackRock remains in the lead on metrics of trading volumes with $226.9 million recorded on Tuesday.
- Eric Balchunas thinks the firm could dethrone MicroStrategy from its helm as the biggest BTC holder.
- The ETF specialist also anticipates IBIT overtaking GBTC as liquidity king as Grayscale sends $400 million worth of Bitcoin transactions to Coinbase.
The US Securities & Exchange Commission (SEC) ushered in a new era for the cryptocurrency space on January 10, approving several exchange-traded fund (ETF) applications in one go. Subsequently, the battle shifted from marketing via commercials and ads to marketing via fees and discounts. The latest is performance scores in trading volume metrics with markets watching to see who will be the next liquidity king.
BlackRock to MicroStrategy, IBIT to usurp GBTC
In the race for the next liquidity king, asset management firm BlackRock (IBIT) is coming up as the next front-runner, recording $226.9 million in spot Bitcoin ETFs trading volume on Tuesday, January 16. Second and third in line are Fidelity (FBTC) and Ark 21Shares (ARKB), recording $170.1 million and $65.2 million, respectively.
Spot BTC ETF trading volumes in millions of dollars
With the growing interest in digital assets suggesting a shifting investment landscape, Bloomberg Intelligence ETF specialist Eric Balchunas says BlackRock dethroning MicroStrategy (MSTR) as the world’s largest Bitcoin holder is a matter of when, not if.
NEW: BlackRock still in the lead on total flows on Day 3 of $BTC Spot ETF trading.
— Eleanor Terrett (@EleanorTerrett) January 16, 2024
Will @BlackRock end up surpassing @MicroStrategy to be the biggest holder of $BTC?
The @EricBalchunas tells me it’s now likely a matter of ‘when’ not ‘if’. https://t.co/WEUb1RnN84
It comes as BlackRock is already at around half a billion dollars ($500 million), holding up to 11,439 BTC against MicroStrategy, which holds 189,150 BTC, worth approximately $5.9 billion, which is equivalent to about 0.9% of the entire BTC supply. With BlackRock’s rise, the race for Bitcoin supremacy marks a shift toward mainstream digital currency acceptance.
Further, Balchunas says BlackRock’s IBIT, the leading spot BTC ETF on trading volume metrics, could usurp Grayscale Bitcoin Trust (GBTC) on liquidity metrics.
LATEST: Day Three volume so far half a billion for the Newborn Nine which is healthy, about the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history). $IBIT keeping lead to be one most likely to overtake $GBTC as Liquidity King. pic.twitter.com/hoatfSmNpN
— Eric Balchunas (@EricBalchunas) January 16, 2024
This comes after Grayscale sent up to $400 million worth of transactions to the Coinbase exchange, with all signs pointing to customer redemptions.
Breaking: 23 minutes ago @Grayscale sends 9 x $43m Bitcoin transactions to @coinbase totalling $400m pic.twitter.com/62sfURHF7E
— MartyParty (@martypartymusic) January 16, 2024
This is days after data from Arkham Intelligence showed that Grayscale sent 4,000 BTC worth $183 million to a Coinbase Prime deposit address, suggesting that investors may be switching their assets to other ETFs or selling normally.
Notably, Grayscale Bitcoin Trust held over $25 billion worth of Bitcoin, which had been locked up for years since there was no option for selling. With the recent spot BTC ETF approvals, which inclined toward cash creates, the redemption option opened. This provided leeway for GBTC holders to exit the trust after years, which means selling the BTC on the open market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.