ETF Bitcoin of BlackRock Poised to Overtake Grayscale

BlackRock's Bitcoin spot ETF is on track to surpass Grayscale, becoming the largest cryptocurrency investment vehicle.

ETF Bitcoin of BlackRock is poised to overtake Grayscale. Photo: BitcoinWorld

It has been three months since the U.S. approved the listing of Bitcoin spot ETFs by a slew of Wall Street giants. As of now, the trading market share has become clearer, with BlackRock's ETF poised to surpass Grayscale to become the largest cryptocurrency investment vehicle.

According to data from Trackinsight, as of April 10, BlackRock's IBIT holds $18.2 billion in assets under management (AUM), while Grayscale stands at $23.2 billion.

Assets under management (AUM) of Bitcoin ETFs. Source: Trackinsight and The Block

GBTC, Grayscale's ETF, which converted from GBTC, charges higher fees than BlackRock's product and has seen a continuous decline in capital inflows since its inception, narrowing the gap between these two giants. Just two months ago, Grayscale's ETF had approximately $23.4 billion in AUM, significantly higher than BlackRock's $4.4 billion.

Eric Balchunas, an ETF analyst at Bloomberg, noted that Grayscale's ETF opened with nearly $30 billion in AUM. However, its leading position is now threatened, partly due to Genesis recently liquidating its entire holdings of GBTC, as reported by Coin68.

Bitcoin holdings by leading spot ETFs. Source: Trackinsight and The Block

In terms of trading volume, Grayscale's fund is also losing market share, dropping from about 50% initially to 23.5% currently.

BlackRock's IBIT has recorded inflows of $603.9 million and manages $10 billion in BTC assets just seven weeks after launching the Bitcoin Spot ETF product.

Bitcoin ETF market share. Source: Trackinsight and The Block

Grayscale's GBTC saw outflows of $154.9 million yesterday, while BlackRock recorded inflows of nearly $128.7 million. Additionally, Fidelity's ETF ranks third in both trading volume, market share, and AUM.