American multinational investment company black rock, recently reached a monumental milestone, intake more than $20 billion in total assets. The BlackRock Spot Bitcoin ETF has successfully surpassed Grayscale to gain the largest Bitcoin fund in the world.
BlackRock is overtaking grayscale
BlackRock iShares Bitcoin Trust recently became the largest Bitcoin fund in the world, overtaking its main rival, Grayscale Bitcoin Trust (GBTC).
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From Tuesday May 28 BlackRock’s Spot Bitcoin ETF holds approximately $19.68 billion in assets under management (AUM), toppling Grayscale’s Bitcoin ETF by $19.65 billion and surpassing the third largest, Fidelity Investments, which recorded $11.1 billion in assets under management. Over the past two days, BlackRock has recorded more inflows, currently bringing its assets under management to over $20 billion.
After launching its Spot Bitcoin ETF on January 11, Grayscale has done this consistently recorded a huge outflow worth billions of dollars. For years, the asset management firm was the largest Bitcoin fund in the world, peaking at around $44 billion in 2021.
However, since converting to an ETF in early 2024, investors have pulled almost $18 billion from Grayscale’s Bitcoin fund. On May 3, GBTC recorded its first inflowwhich received approximately $63 million, effectively ending the 82-day streak of outflows.
The earlier outflows had already significantly weakened Grayscale’s position as the largest Bitcoin ETF. BlackRock’s Spot Bitcoin ETF, on the other hand, does registering millions of inflows since launch, making it unsurprising that IBIT eventually surpassed Grayscale’s GBTC.
BlackRock has only recorded a handful of outflows and they are minimal zero currents. The highest recorded inflow occurred on March 12, with IBIT raising approximately $849 million in a single day. Furthermore, BlackRock’s Spot Bitcoin ETF witnessed its first outflow on May 1, losing approximately $36.9 million. On the same day, Grayscale had reported outflows of more than $167 million.
Investors likely prefer BlackRock’s Spot Bitcoin ETF due to its relatively affordable ETF management fees, which dropped from 0.30% to 0.25%. On the other hand, Grayscale has the highest ETF management fees among all 11 Approved US Spot Bitcoin ETFs.
While the asset manager has done that promised to lower ratesGrayscale’s Bitcoin Trust’s current ETF management fees continue to accrue at up to 1.5% annually.
Still leading the net inflows of Bitcoin ETFs
According to Data on the other sideThis past week, so was BlackRock leads the Spot Bitcoin ETF racewith the most inflows recorded from the 11 Spot Bitcoin ETFs.
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With the exception of May 27, when everything United States Spot Bitcoin ETFs saw no cash flows, with BlackRock recording 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 witnessed outflows of $105.2 million. Currently, Grayscale continues to record more outflows, losing $31.1 million at the time of writing.
Featured image created with Dall.E, chart from Tradingview.com