American international investment company Black Rock, recently reached a monumental milestone, recording total assets exceeding $20 billion. The BlackRock Spot Bitcoin ETF has successfully transcended the gray scale and become largest Bitcoin fund in the world.
BlackRock is ahead of Grayscale
BlackRock iShares Bitcoin Trust recently became the world’s largest Bitcoin trust, overtaking its main rival, Grayscale Bitcoin Trust (GBTC).
From Tuesday, May 28, BlackRock’s Bitcoin Spot ETF holds approximately $19.68 billion in Assets Under Management (AUM), toppling Grayscale’s Bitcoin ETF with $19.65 billion and overtaking the third largest, Faithful investments, which recorded $11.1 billion in AUM. Over the past two days, BlackRock has seen more inflows, now increasing its AUM to over $20 billion.
After launching its Spot Bitcoin ETF on January 11, Grayscale has been consistent in doing just that saw massive outflows worth billions of dollars. For years, the asset management company was the world’s largest Bitcoin fund, peaking at around $44 billion in 2021.
However, since its conversion to an ETF in early 2024, investors have pulled nearly $18 billion from Grayscale’s Bitcoin fund. 3rd of May GBTC recorded its first inflowreceiving approximately $63 million and effectively ending an 82-day streak of outflows.
Its previous outflows have already significantly weakened Grayscale’s position as the largest Bitcoin ETF. In contrast, it was BlackRock’s Spot Bitcoin ETF noting millions in proceeds since its launch, so it’s no surprise that IBIT eventually surpassed Grayscale’s GBTC.
BlackRock has only seen a few outflows, and those are minimal zero flows. The highest recorded inflow of funds occurred on March 12, with IBIT raising approximately $849 million in a single day. Additionally, BlackRock’s Spot Bitcoin ETF saw its first outflow on May 1, resulting in a loss of approximately $36.9 million. On the same day, Grayscale reported outflows of over $167 million.
Investors likely favor BlackRock’s Spot Bitcoin ETF due to its relatively affordable ETF management fees, which have dropped from 0.30% to 0.25%. Grayscale, on the other hand, has highest ETF management fees among everyone 11 Approved US Spot Bitcoin ETFs.
Although the asset management company does promised to reduce feesGrayscale Bitcoin Trust’s current ETF management fees are as high as 1.5% per year.
Still leading net impact on Bitcoin ETF
According to Data from the other sidefor the past week it has been BlackRock leader of the Spot Bitcoin ETF racerecording the largest inflow of the 11 Spot Bitcoin ETFs.
Except for May 27, when everything US Spot Bitcoin ETFs saw zero flow, BlackRock recorded a total of $127.1 million in the first two days. BlackRock’s Bitcoin Trust saw inflows of $102.5 million on Wednesday, while Grayscale’s Spot Bitcoin ETF saw outflows of $105.2 million. Currently, Grayscale continues to see more outflows, having lost $31.1 million as of this writing.
Featured image created with Dall.E, chart from Tradingview.com
