BlackRock Nears Grayscale in Bitcoin ETF Race, Intensifying Competition
In the ongoing battle for dominance in the cryptocurrency investment landscape, BlackRock’s spot bitcoin exchange-traded fund (ETF) is making significant strides toward overtaking Grayscale as the largest crypto-based investment vehicle.
Three months since the inception of spot bitcoin ETF trading, BlackRock’s IBIT fund is steadily closing the gap on Grayscale’s fund in terms of assets under management (AUM). Trackinsight data compiled by The Block Data Dashboard reveals that as of Tuesday, BlackRock’s IBIT fund boasted $18.2 billion in AUM, compared to Grayscale’s $23.2 billion.
Despite Grayscale’s higher fees relative to its competitors, its GBTC fund has experienced consistent capital outflows since its launch in January. Two months ago, Grayscale’s fund held approximately $23.4 billion in AUM, whereas BlackRock’s stood at $4.4 billion, indicating a substantial narrowing of the gap in AUM between the two.
Grayscale’s ETF initially launched with nearly $30 billion in AUM, attributed to the conversion of its flagship fund. However, the declining AUM is partly attributed to Genesis selling GBTC shares, according to Eric Balchunas, senior ETF analyst at Bloomberg.
Furthermore, Grayscale’s fund has witnessed a gradual decline in trading volume market share, dropping from approximately 50% at the launch of spot bitcoin ETFs on January 11 to 23.5% as of Tuesday.
In contrast, BlackRock’s ETF has been gaining momentum, evidenced by its $128.7 million inflows on Tuesday, while Grayscale’s fund experienced $154.9 million in outflows.
Fidelity’s spot bitcoin ETF holds the third position in terms of trading volume market share and AUM, further intensifying the competition in the burgeoning cryptocurrency ETF market.
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