The asset size of the cryptocurrency spot ETF owned by Black Rock, the world's largest asset management company, recently exceeded the well-known GrayScale. It is worth mentioning that Black Rock currently has only two cryptocurrency spot ETFs, compared to GrayScale, which has four funds and has a first-mover advantage.
BlackRock ETF has surpassed $21.6 billion, taking just seven months to overtake Grayscale
Currently, Black Rock only offers two funds: IBIT (Bitcoin Spot ETF) and ETHA (Ethereum Spot ETF). According to data provided by SoSo Value, the total assets under management of IBIT are approximately US$20.8 billion. Adding US$840 million under ETHA, Black Rock's assets under management have reached US$21.6 billion.
In contrast, GrayScale Asset Management began to provide over-the-counter public trading of GBTC in 2015. In January 2024, after the adoption of the Bitcoin ETF, it was also transformed and listed on the New York Stock Exchange. GrayScale currently has four cryptocurrency ETFs: GBTC, BTC, ETHE, and ETH. The total market value of the cryptocurrency ETFs managed by the company is approximately US$21.3 billion.
BlackRock Bitcoin ETF Size
BlackRock Ethereum ETF Size Financial giant holds IBIT, management fee becomes GBTC flaw?
Recently, Morgan Stanley stated that it has sold approximately US$269.9 million in GBTC and currently holds 5.5 million shares of IBIT, which translates to a market price of approximately US$187.1 million. Goldman Sachs also disclosed holding nearly 7 million shares of IBIT, which translates to about $235 million. But the firm also holds about $35 million worth of Grayscale Switch Fund shares and about $150 million in other spot Bitcoin ETF shares.
(13F reporting is due soon, institutions hold $13.3 billion in Bitcoin ETFs in the second quarter)
Grayscale's GBTC used to be a closed-end fund (CEF). Although it tracked the underlying assets like ETFs, it could not correct mispricing by creating an arbitrage mechanism of redemption, so GBTC used to be at a discount. According to the announcement on the GBTC official website, the current management fee of GBTC is 1.5%. In comparison, IBIT only charges 0.25%.
(You must know the hidden fees of Bitcoin spot ETF, an overview of BTC investment methods and fees)
Nate Geraci, president of investment adviser The ETF Store, pointed out on Twitter that BlackRock’s IBIT Spot Bitcoin ETF has only seen one day of net outflows since its launch. Data from SoSoValue backs up Geraci's claims, although the ETF has also seen 26 consecutive days of net inflows or net outflows to date.
(Grayscale CEO: GBTC net outflow has gradually balanced, and fees are expected to be reduced)
Michael Sonnenshein, former CEO of Grayscale, once said that as time goes by and the market becomes more mature, Grayscale is expected to reduce GBTC fees in the future. However, soon after, Sonnenshein announced his departure and was replaced by former Goldman Sachs senior executive Peter Mintzberg.
(Grayscale CEO Michael Sonnenshein leaves, former Goldman Sachs executive will take over)
This article Black Rock’s cryptocurrency ETF surpasses Grayscale and is favored by various institutions. First appeared on Chain News ABMedia.