BlackRock Leads Grayscale in Spot Bitcoin ETF Assets Under Management
An American multinational investment company, BlackRock, has surpassed Grayscale in total Assets Under Management (AUM) for Spot Bitcoin Exchange Traded Funds (ETFs). This significant achievement highlights BlackRock’s growing influence in the ETF sector and showcases its confidence in crypto-based investments.
BlackRock’s iShares Bitcoin Trust Exceeds $21 Billion
BlackRock’s iShares Bitcoin Trust (IBIT) has exceeded $21.4 billion in assets under management, surpassing Grayscale’s Bitcoin Trust ETF (GBTC) by more than $1.6 billion. The rapid growth in AUM is a result of the consistent inflows observed by BlackRock’s Spot Bitcoin ETF since the beginning of the year.
- BlackRock witnessed its first inflow on January 11, accumulating over $111 million.
- The ETF attracted hundreds of millions in inflows, recording a daily inflow of $849 million on March 12, 2024.
Grayscale Faces Outflows as BlackRock Thrives
Grayscale, on the other hand, has experienced more outflows than inflows since its launch in January. This trend is reflected in Grayscale’s Spot Bitcoin ETF, which has seen a total of $17.5 billion in outflows compared to BlackRock’s increasing AUM.
- BlackRock’s Spot Bitcoin ETF holds more than 302,536 BTC, constituting over 1.4% of Bitcoin’s total circulating supply.
- Grayscale has gathered approximately 285,105 BTC but faces continuous outflows, most notably on June 6 and 7.
BlackRock’s Low Fees Attract Investors Away from Grayscale
BlackRock’s Spot Bitcoin ETF boasts an annual management fee of 0.25%, significantly lower than Grayscale’s 1.5% fee. This fee difference has influenced investors to shift assets from Grayscale’s Spot Bitcoin ETF to BlackRock’s cost-effective IBIT, contributing to BlackRock’s success and Grayscale’s challenges in retaining AUM.
BlackRock Records $945 Million Inflows in Four Days
Farside has reported a significant increase in inflows for BlackRock’s Spot Bitcoin ETF, with IBIT recording four consecutive days of inflows from Tuesday, June 4 to Friday, June 7. Despite starting the month with zero flows, BlackRock attracted a total of $946 million in inflows over the past four days, showcasing the ongoing confidence and support from investors.
- BlackRock’s Spot Bitcoin ETF received $274 million on June 4 and $155 million on June 5.
- Additionally, on June 6 and 7, IBIT saw substantial inflows of $349.9 million and $168.3 million, respectively.
Hot Take: BlackRock’s Dominance Signals a Shifting Landscape in Crypto Investments
BlackRock’s success in surpassing Grayscale in Spot Bitcoin ETF AUM signifies a changing tide in the crypto investment landscape. As more investors opt for cost-effective options and demonstrate confidence in BlackRock’s offerings, Grayscale faces a challenging competitive environment.
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