American multinational investment company, black rock has surpassed the Grayscale in terms of total assets under management (AUM) for Spot Bitcoin exchange-traded funds (ETFs). This step means BlackRock’s Growing Prominence in the ETF Industryhighlighting the company’s confidence in crypto-based investments.
BlackRock Spot Bitcoin ETF Surpasses $21 Billion
BlackRock iShares Bitcoin Trust (IBIT) exceeded $21.4 billion in assets under management, surpassing Grayscale Bitcoin Trust ETF (GBTC) more than $1.6 billion. This massive increase is attributed to the consistent inflows seen by BlackRock’s Spot Bitcoin ETF since the start of the year.
Following the launch of its Spot Bitcoin ETF on January 11, BlackRock recorded millions of daily entries, recording only a few zero entry and even fewer releases in the last five months.
According to Farside data, BlackRock recorded its first-ever inflow on January 11 after its launch, raising over $111 million. Since then, the ETF has attracted hundreds of millions of entriesrecording its largest ever daily inflow of $849 million on March 12, 2024.
Grayscale, on the other hand, has seen more exits than inflows since its launch in January. Unsurprisingly, BlackRock’s IBIT surpassed GBTC, given that Grayscale’s Spot Bitcoin ETF recorded a a total of $17.5 billion in outflows.
Data of BlackRock’s fund site revealed that the company’s Spot Bitcoin ETF has accumulated over 302,536 BTC, constituting over 1.4% of the total circulating supply of Bitcoin. On the other hand, Grayscale has gathered approximately 285,105 BTC in trust and currently holds $19.75 billion in assets under management.
Despite the experience brief influxes in May, Grayscale continues to face significant capital outflows. The most recent declines occurred on June 6 and 7, with GBTC sees exits of $37.6 million and $36.3 million, respectively.
Compared to Grayscale’s Spot Bitcoin ETF, BlackRock’s IBIT performed extremely well. BlackRock currently charges a annual management fee of 0.25% for its Spot Bitcoin ETFs, while the Grayscale Spot Bitcoin ETF imposes a costly 1.5% fee.
This substantial difference in ETF fees has had an influence on GBTC outflows year-to-date. Many investors have shifted their assets from the Grayscale Spot Bitcoin ETF to more profitable options like BlackRock’s IBIT.
BlackRock attracts $945 million in inflows in four days
The hidden side has reported a dazzling increase in inflows for BlackRock Spot Bitcoin ETFwith IBIT recording four consecutive days of entries from Tuesday June 4 to Friday June 7.
On June 3, BlackRock’s IBIT saw no inflows, while other Spot Bitcoin ETFs, such as Fidelity Wise Origin Bitcoin Fund (FBTC)Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) saw substantial inflows.
Despite starting June with zero inflows, BlackRock 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 recorded inflows of $349.9 million and $168.3 million, respectively.
Featured image from Getty Images, chart from TradingView
