BlackRock Overtakes Grayscale To Become The Largest Bitcoin Fund In The World With $20 Billion AUM
31 May 2024 - 2:00AM
NEWSBTC
American multinational investment company BlackRock, has recently
achieved a monumental milestone, recording over $20 billion in
total assets. The BlackRock Spot Bitcoin ETF has successfully
surpassed Grayscale to become the largest Bitcoin fund in the
world. BlackRock Overtakes Grayscale BlackRock iShares
Bitcoin Trust has recently become the world’s largest Bitcoin fund,
overtaking its primary rival, Grayscale Bitcoin Trust (GBTC).
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BlackRock’s Spot Bitcoin ETF held around $19.68 billion in Assets
Under Management (AUM), overthrowing Grayscale’s Bitcoin ETF with
$19.65 billion and surpassing the third largest, Fidelity
Investments, which recorded $11.1 billion in AUM. Over the past two
days, BlackRock has recorded more inflows, pushing its AUM to more
than $20 billion presently. Following the launch of its Spot
Bitcoin ETF on January 11, Grayscale has consistently recorded
massive outflows worth billions of dollars. For years, the asset
management company was the world’s largest Bitcoin fund, reaching a
peak of about $44 billion in 2021. However, since its
conversion into an ETF at the beginning of 2024, investors have
pulled out almost $18 billion from Grayscale’s Bitcoin fund. On May
3, GBTC recorded its first inflow, receiving approximately $63
million, and effectively ending its 82-day streak of
outflows. Its previous outflows had already significantly
weakened Grayscale’s position as the largest Bitcoin ETF. In
contrast, BlackRock’s Spot Bitcoin ETF has been recording millions
of inflows since its launch, making it unsurprising that IBIT has
eventually surpassed Grayscale’s GBTC. BlackRock has only recorded
a handful of outflows and minimal zero flows. Its highest recorded
inflow occurred on March 12, with IBIT gathering approximately $849
million in a single day. Additionally, BlackRock’s Spot Bitcoin ETF
witnessed its first outflow on May 1, losing about $36.9 million.
On the same day, Grayscale had reported outflows of more than $167
million. Investors are likely favoring BlackRock’s Spot
Bitcoin ETF due to its relatively affordable ETF management fees,
which decreased from 0.30% to 0.25%. On the other hand, Grayscale
has the highest ETF management fees among all the 11 approved
United States Spot Bitcoin ETFs. While the asset management
company has promised to slash fees, Grayscale’s Bitcoin Trust’s
current ETF management fees remain as high as 1.5% annually. Still
Leading Spot Bitcoin ETF Net Inflows According to Farside data, for
the past week, BlackRock has been leading the Spot Bitcoin ETF
race, recording the most inflows out of the 11 Spot Bitcoin
ETFs. Related Reading: Shiba Inu Price Prediction: SHIB Shows
Unusually High Strength Against Dogecoin Excluding May 27, when all
United States Spot Bitcoin ETFs saw zero flows, BlackRock recorded
a total of $127.1 million for the first two days. BlackRock’s
Bitcoin Trust saw $102.5 million in inflows on Wednesday, while
Grayscale’s Spot Bitcoin ETF witnessed outflows of $105.2 million.
Currently, Grayscale is still recording more outflows, losing $31.1
million as of writing. Featured image created with Dall.E, chart
from Tradingview.com
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