BlackRock Surpasses Grayscale in Bitcoin and Ethereum ETF AUM for the First Time

• BlackRock’s Bitcoin and Ethereum ETFs have now overtaken those offered by Grayscale in terms of assets under management (AUM).
• Despite this, Grayscale’s overall balance of BTC and ETH remains higher, largely due to their non-ETF funds.
• Additionally, outflows from Grayscale’s GBTC and ETHE continue to rise steadily.

BlackRock’s ETFs have surpassed Grayscale’s in AUM, signaling a pivotal shift in crypto investments.

BlackRock Vs. Grayscale ETF AUM Details

Recently, BlackRock’s ETFs for Bitcoin and Ethereum have seen a surge in their AUM, positioning the firm ahead of Grayscale for the first time. This elevation is driven by significant inflows into BlackRock’s IBIT and ETHA funds. According to Arkham Intelligence, BlackRock’s ETFs now collectively manage assets worth $21.22 billion, slightly outpacing Grayscale’s $21.20 billion.

BlackRock’s Strategic Position

BlackRock’s IBIT ETF alone commands an AUM of $20.54 billion, encapsulating 348,609 BTC. Recently, this ETF attracted investments from Morgan Stanley, as noted in their second-quarter 13F filings. Their Ethereum ETF, known as ETHA, manages $847 million with a holding of 318,180 ETH. This makes BlackRock the largest crypto ETF provider globally, an impressive milestone.

Grayscale’s Continued Dominance in Overall Balances

Despite BlackRock’s recent gains, Grayscale maintains a formidable presence in the market. Grayscale’s flagship product, GBTC, stands strong with an AUM of $13.17 billion, and their Ethereum Trust (ETHE) oversees $4.82 billion. Grayscale’s total holdings are further bolstered by their Digital Large Cap Fund (GDLC), which manages assets worth $460 million, predominantly in BTC and ETH.

ETF Inflows and Outflows: A Mixed Bag

On August 15, the crypto ETF market exhibited mixed trends for Bitcoin and Ethereum. Bitcoin ETFs experienced net positive flows of $11.1 million, indicating robust investor interest. Fidelity led with inflows of $16.2 million, followed by Bitwise with $6.2 million. Notably, Grayscale’s BTC Mini ETF also saw $13.7 million in inflows, even as GBTC faced significant outflows amounting to $25 million. Meanwhile, BlackRock’s IBIT ETF remained steady with no net inflows or outflows.

Ethereum ETF Market Sentiment

Conversely, Ethereum ETFs encountered considerable outflows. The spot Ether ETF market saw total outflows of $39.2 million, with Grayscale’s ETHE alone witnessing a $42.5 million withdrawal. This suggests an increasing uncertainty regarding Ethereum’s short-term outlook among investors. Nevertheless, Fidelity’s Ether ETF (FETH) managed to attract a modest inflow of $2.54 million, underscoring varying confidence levels in the Ether market.

Conclusion

In summary, BlackRock’s ETFs now surpass Grayscale’s in AUM, marking a significant development in the crypto investment landscape. Despite this, Grayscale retains a substantial overall balance due to its diverse set of funds. The market’s mixed sentiment towards Bitcoin and Ethereum ETFs highlights evolving investor perspectives. As these dynamics unfold, close monitoring of ETF flows and corporate strategies will be crucial for understanding future trends in crypto investments.