BlackRock, the world’s biggest money manager, has become the king of crypto ETFs, surpassing Grayscale in terms of assets under management (AUM).
BlackRock’s Dominance
BlackRock’s two crypto ETFs, IBIT (Bitcoin) and ETHA (Ethereum), hold a whopping $21.2 billion in crypto assets. This is just slightly more than Grayscale’s four ETFs, which hold $21.2 billion. However, Grayscale still has a higher overall balance due to its GDLC fund, which isn’t an ETF and has $460 million in AUM.
BlackRock’s IBIT: A Huge Hit
BlackRock’s IBIT has been a massive success since its launch in January. It’s had only one day of investors pulling money out, while attracting over $20.5 billion in new investments.
Grayscale’s Struggles
In contrast, Grayscale’s GBTC has seen investors pull out more money than they’ve put in, resulting in a net outflow of $19.65 billion. This is a big reason why Grayscale lost its top spot to BlackRock.
Morgan Stanley and Goldman Sachs Back BlackRock
Big banks like Morgan Stanley and Goldman Sachs are also betting on BlackRock’s IBIT. Morgan Stanley, for example, has basically dumped all of its GBTC shares and moved to BlackRock’s ETF.
Bitcoin ETFs Outshine Ethereum ETFs
While Bitcoin ETFs have seen a lot of money flowing in, Ethereum ETFs haven’t been as popular. This suggests that investors are more comfortable with Bitcoin than Ethereum right now.
Overall, BlackRock’s dominance in the crypto ETF space shows how much confidence investors have in the company and in Bitcoin. It’s likely that BlackRock will continue to be a major player in the crypto market going forward.
