ETFs
Bitcoin ETF Showdown: Who Wins the Race Between GBTC and IBIT? – iShares Bitcoin Trust (NASDAQ:IBIT), Grayscale Bitcoin Trust (BTC) Fractional Undivided Beneficial Interest Units (ARCA:GBTC)
In the world of Bitcoin exchange-traded funds (ETFs)two names stand out: Bitcoin Trust in Grayscale GBTC and iShares Bitcoin Trust Fund I BITE.
Although both track the same index, the CME CF Benchmarks Bitcoin BTC/USD Reference Rate-New York Variant, their performance, assets under management (AUM) and technical data reveal some intriguing contrasts.
Despite GBTC’s superior price performance, IBIT enjoys larger AUM.
Let’s dive into the details to understand this puzzling disparity.
The Tale of Two Bitcoin Titans
Grayscale Bitcoin Trust (GBTC) And iShares Bitcoin Trust (IBIT) are categorized as currency ETFs. Both were launched in January 2024, with GBTC debuting on the 11th and IBIT on the 5th.
Despite their similarities, their financial indicators and market traction differ significantly.
| Issuer | Digital Currency Group, Inc. | BlackRock, Inc. |
| Expense ratio | 1.50% | 0.12% |
| AT M | $17 billion | $19 billion |
| Shares outstanding | 309M | 540M |
Data source: VettaFi ETFdb
Read also: Dogecoin Crashes as Whales Move 400 Million Coins: Trader Predicts ‘Next Leg Will Be a Huge Bounce’
Performance Indicators: GBTC shines brightly
GBTC has generated impressive returns over different time periods, outperforming IBIT, which lacks long-term performance data due to its recent inception.
| 1 week | -0.87% | -0.78% |
| 2 weeks | -6.16% | -6.00% |
| 1 month | -10.70% | -10.66% |
| 3 months | -8.59% | -8.40% |
Data source: VettaFi ETFdb
Despite GBTC’s strong performance, IBIT lags behind AUM. Currently, IBIT holds $19 billion, compared to GBTC’s $17 billion.
Technical analysis: neck and neck
Both ETFs display similar technical indicators, reflecting their parallel tracking of Bitcoin’s benchmark rate.
However, the higher performance numbers from GBTC could suggest better investor sentiment or confidence.
| MA 20 days | $57.58 | $36.94 |
| 60 day MA | $57.89 | $37.09 |
| MACD 15 Period | -2.51 | -1.59 |
| MACD 100 period | -3.46 | -2.14 |
| RSI 10 days | 39.07 | 39.31 |
| RSI 20 days | 43.1 | 43.21 |
| RSI 30 days | 46.06 | 45.97 |
| Lower Bollinger Band (10 days) | $52.29 | $33.55 |
| Upper Bollinger Band (10 days) | $57.81 | $37.08 |
| Lower Bollinger Band (30 days) | $52.71 | $33.82 |
| Upper Bollinger Band (30 days) | $65.05 | $41.71 |
Data source: VettaFi ETFdb
Decoding the divergence
So why does IBIT, despite its modest returns, have higher AUM? The answer may lie in investor sentiment and fee structures. BlackRock’s lower expense ratio of 0.12%, compared to GBTC’s 1.50%, likely appeals to cost-conscious investors, which generates higher inflows despite the performance lag.
Additionally, BlackRock’s reputation and vast resources could help build investor confidence and thus increase assets under management. On the other hand, GBTC’s higher expense ratio could deter some investors, despite its better price/performance ratio.
The comparison between GBTC and IBIT highlights a classic investing conundrum: choosing between higher performance and lower fees.
While GBTC dazzles with its returns, IBIT seduces with its affordable price and the confidence it inspires. For investors, the decision depends on their priority: immediate performance or long-term profitability.
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