BlackRock Takes the Lead in Crypto ETF Holdings

Recent statistics indicate that BlackRock, the world’s foremost asset management firm, has achieved a significant milestone by becoming the leader in cryptocurrency exchange-traded fund (ETF) holdings.

Comparative Analysis: BlackRock vs. Grayscale

A report from crypto analytics platform Arkham disclosed on X that BlackRock has overtaken Grayscale to claim the title of having the largest crypto ETF assets. According to Arkham’s data, BlackRock’s ETFs hold approximately $21.22 billion, while Grayscale’s assets amount to around $21.20 billion.

This remarkable achievement for BlackRock is attributed to its two primary funds: IBIT (a spot Bitcoin ETF) and ETHA (a spot Ethereum ETF). In contrast, Grayscale manages four funds—GBTC (spot Bitcoin ETF), BTC Mini, ETHE (spot Ethereum ETF), and ETH Mini. However, it is important to note that Grayscale still maintains a higher overall balance due to its GDLC fund, which is not classified as an ETF and holds about $460 million in assets under management.

The Performance of IBIT Since Launch

Since its introduction earlier this year in January 2024, BlackRock’s IBIT has emerged as one of the standout performers within the ETF sector. Nate Geraci, president of The ETF Store, recently highlighted on X that since its launch date, IBIT experienced only one day with outflows.

“iShares Bitcoin ETF has had just *one* day of outflows since launching… One day. Total inflows reached $20.5 billion—an exceptional debut for 2024.”

— Nate Geraci (@NateGeraci)

In stark contrast, Grayscale’s GBTC has recorded merely 12 days with inflows since its inception and currently faces a cumulative net outflow totaling approximately $19.65 billion—a trend contributing significantly to their loss of market leadership against BlackRock.

The Shift Among Major Investment Banks

This shift in dominance is further underscored by recent disclosures from major investment banks like Morgan Stanley and Goldman Sachs regarding their substantial investments in iShares Bitcoin ETFs. Notably, Morgan Stanley revealed it had nearly divested itself from almost $270 million worth of GBTC shares.

The Divergence Between Bitcoin and Ethereum ETFs

While spot Bitcoin ETFs have shown positive performance over recent weeks—with total net inflows reaching around $32.57 million—Ethereum-based products have struggled significantly during this period. Despite starting strong with three consecutive days of inflow at the beginning of last week, Ethereum ETFs ended Friday with a cumulative net outflow totaling approximately $14.17 million.

This stark difference highlights varying levels of acceptance between Bitcoin funds compared to newly launched Ethereum offerings following their respective launches.