BlackRock Surpasses Grayscale in Bitcoin Holdings
BlackRock’s iShares Bitcoin Trust has achieved a significant milestone by becoming the largest Bitcoin fund globally, overtaking its main competitor, Grayscale Bitcoin Trust (GBTC).
- As of Tuesday, May 28, BlackRock’s Spot Bitcoin ETF held approximately $19.68 billion in Assets Under Management (AUM), surpassing Grayscale’s Bitcoin ETF with $19.65 billion and outpacing Fidelity Investments, the third-largest, with $11.1 billion in AUM.
- With consistent inflows over the past two days, BlackRock has now crossed the $20 billion AUM mark, solidifying its position as the world’s leading Bitcoin fund.
BlackRock’s Ascension to the Top
Following the launch of its Spot Bitcoin ETF in January, BlackRock’s ETF has been a magnet for investor funds, unlike Grayscale which has experienced significant outflows over the same period.
- Grayscale, once the largest Bitcoin fund globally with a peak AUM of $44 billion in 2021, has lost nearly $18 billion to outflows since converting to an ETF in 2024.
- By contrast, BlackRock’s Spot Bitcoin ETF has seen steady inflows since its inception, leading to its current stature as the premier Bitcoin fund worldwide.
Investor Preference for BlackRock
BlackRock’s Spot Bitcoin ETF has garnered investor favor due to its competitive management fees, currently at 0.25%, lower than Grayscale’s 1.5% annual fees for its Bitcoin Trust.
- Despite Grayscale’s intentions to reduce fees, BlackRock’s cost-effective structure has attracted investors seeking to maximize returns on their Bitcoin investments.
- BlackRock’s consistent inflows and minimal outflows further highlight its popularity among investors, solidifying its position ahead of Grayscale.
BlackRock Continues to Lead in Inflows
Recent data from Farside indicates that BlackRock has been the top contender in receiving inflows among the 11 approved Spot Bitcoin ETFs in the United States.
- Excluding a day with zero flows for all ETFs, BlackRock recorded $127.1 million in inflows over the past week, showcasing its dominance in the market.
- On Wednesday alone, BlackRock’s Bitcoin Trust attracted $102.5 million in inflows, surpassing Grayscale’s Spot Bitcoin ETF, which experienced outflows of $105.2 million.
The Rise of BlackRock in the Crypto Space
With lower fees, higher inflows, and a substantial increase in assets under management, BlackRock’s Spot Bitcoin ETF has emerged as the leading Bitcoin fund worldwide, surpassing its long-standing rival, Grayscale.
Investors continue to show confidence in BlackRock’s management of their Bitcoin investments, contributing to the exponential growth of the iShares Bitcoin Trust.
Hot Take: BlackRock’s Dominance Unmatched in the Crypto Sector
As BlackRock solidifies its position at the forefront of the cryptocurrency investment landscape, it poses a formidable challenge to other players in the market. With a clear lead in assets under management and consistent inflows, BlackRock’s Spot Bitcoin ETF remains a top choice for investors seeking exposure to the digital asset.
By
By
By
By