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Crypto Watch

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American multinational investment company, BlackRock has surpassed Grayscale in total Assets Under Management (AUM) for Spot Bitcoin Exchange Traded Funds (ETFs). This milestone signifies BlackRock’s growing prominence in the ETF sector, highlighting the company’s confidence in crypto-based investments.  

BlackRock Spot Bitcoin ETF Surpasses $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. This massive increase is attributed to the consistent inflows witnessed by BlackRock’s Spot Bitcoin ETF since the beginning of the year.

Following the launch of its Spot Bitcoin ETF on January 11, BlackRock has recorded millions in inflows daily, only witnessing a few zero inflows and even fewer outflows for the past five months. 

According to Farside’s data, BlackRock recorded its first-ever inflow on January 11 after its launch, amassing over $111 million. Since then, the ETF has attracted hundreds of millions in inflows, recording its largest-ever daily inflow of $849 million on March 12, 2024. 

Grayscale, on the other hand, has witnessed more outflows than inflows since its launch in January. Unsurprisingly, BlackRock’s IBIT has surpassed GBTC, considering Grayscale’s Spot Bitcoin ETF has recorded a total of $17.5 billion in outflows. 

Data from BlackRock’s fund site has revealed that the company’s Spot Bitcoin ETF has accumulated more than 302,536 BTC, constituting more than 1.4% of Bitcoin’s total circulating supply. In contrast, Grayscale has gathered approximately 285,105 BTC in its trust and currently holds $19.75 billion in assets under management. 

Despite experiencing brief inflows in May, Grayscale continues to face substantial outflows. The most recent drops occurred on June 6 and June 7, with GBTC seeing outflows of $37.6 million and $36.3 million, respectively. 

Compared to Grayscale’s Spot Bitcoin ETF, BlackRock’s IBIT has been performing extremely well. BlackRock currently charges an annual management fee of 0.25% for its Spot Bitcoin ETFs, while Grayscale Spot Bitcoin ETF imposes an expensive 1.5% fee. 

This substantial difference in ETF fees has had an influence on GBTC’s outflows since the beginning of the year. Many investors have been shifting assets from Grayscale Spot Bitcoin ETF to more cost-effective options like BlackRock’s IBIT. 

BlackRock Attracts $945 Million Inflows In Four Days 

Farside has reported a soaring 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.

On June 3, BlackRock’s IBIT saw zero inflows, while other Spot Bitcoin ETFs, such as Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) recorded substantial inflows. 

Despite starting June with zero flows, BlackRock has attracted a total of $946 million in inflows over the past four days. The Spot Bitcoin ETF received $274 million on June 4 and $155 million on June 5. Additionally, on June 6 and 7, IBIT saw inflows of $349.9 million and $168.3 million, respectively. 

Featured image from Getty Images, chart from TradingView