BlackRock Surpasses Grayscale in Crypto ETF Holdings
Recent data from the Crypto intelligence platform Arkham revealed that BlackRock has now become the asset management firm with the largest crypto ETF holdings, surpassing Grayscale. BlackRock’s exchange-traded funds currently hold $21,217,107,987 worth of crypto assets, compared to Grayscale’s $21,202,480,698 AUM.
- BlackRock’s two funds, IBIT (spot Bitcoin ETF) and ETHA (spot Ethereum ETF), propelled the trillion-dollar asset manager into this position.
- Although Grayscale offers four funds, BlackRock’s strategic ETF holdings placed them at the top spot in the crypto ETF market.
Comparison of BlackRock’s ETFs and Grayscale’s Funds
Despite offering fewer funds, BlackRock has managed to exceed Grayscale in crypto ETF holdings. BlackRock’s IBIT (spot Bitcoin ETF) and ETHA (spot Ethereum ETF) have played a significant role in this achievement.
- BlackRock currently holds $21,217,107,987 in crypto assets through its exchange-traded funds.
- Grayscale, on the other hand, has $21,202,480,698 worth of crypto assets under management (AUM).
BlackRock’s Position
BlackRock’s position at the top of the crypto ETF market is strengthened by its two key funds, IBIT and ETHA. Despite Grayscale offering a larger number of funds, BlackRock’s strategic holdings have placed them ahead in the competitive landscape.
- Grayscale’s GBTC fund, despite not being an ETF, holds $460 million in AUM, maintaining its balance against BlackRock.
- BlackRock’s ETFs have shown strong performance since their launch in January, solidifying their position in the market.
Performance of BlackRock’s IBIT
BlackRock’s iShares Bitcoin ETF (IBIT) has been one of the standout performers in the ETF market since its launch in January. With consistent inflows and just one day of outflows since inception, IBIT has demonstrated strong demand and performance.
- IBIT has recorded $20.5 billion in inflows, making it one of the top launches of 2024.
- Comparatively, Grayscale’s Bitcoin Trust (GBTC) has seen net outflows, contributing to BlackRock’s lead in AUM.
Institutional Support for BlackRock’s ETFs
Investment banks such as Morgan Stanley and Goldman Sachs have disclosed their substantial holdings of BlackRock’s iShares Bitcoin ETF, further bolstering its position in the market.
- Morgan Stanley recently divested nearly all of its $270 million GBTC shares in favor of BlackRock’s ETFs.
- This institutional support has reaffirmed BlackRock’s dominance in the crypto ETF landscape.
Spot Bitcoin ETF vs. ETH ETFs Performance
While the spot Bitcoin ETFs have shown positive performance in recent weeks, the Ethereum ETFs have struggled to gain traction. Despite initial inflows, the Ethereum products closed the week with net outflows, highlighting the diverging trends between Bitcoin and Ethereum funds.
- Bitcoin ETFs recorded a total net inflow of $32.57 million, indicating strong investor interest.
- In contrast, Ethereum ETFs experienced a cumulative net outflow of $14.17 million, signaling challenges in the acceptance of these products.
Hot Take: BlackRock Leads in Crypto ETF Market
According to the latest data, the world’s largest asset manager BlackRock has added another feather to its cap, becoming the company with the largest crypto exchange-traded fund (ETF) holdings. This achievement marks a significant milestone in BlackRock’s dominance in the evolving crypto landscape.
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