BlackRock has had fewer digital asset ETFs, but these products now hold more assets than Grayscale's products: investor preference is shifting.
Large-scale institutional investors such as Morgan Stanley and Goldman Sachs have also been observed to decrease their exposure to Grayscale products substantially.
Since Grayscale was one of the forerunners of investment in crypto assets, there might be a shift in the market structure after BlackRock's has appeared.
For the first time in what can be described as a dramatic shift in the dynamics of cryptocurrency investment products, BlackRock’s digital assets (ETFs) currently have a higher total asset under management (AUM) than Grayscale. Compared to Grayscale, once leading in such an industry, BlackRock, the world’s biggest asset manager, is now in front of it. The alteration is due to new investor preferences and increased BlackRock’s participation in digital asset markets.
BlackRock’s ascent in the crypto ETF market is particularly striking given that the firm offers only two funds: As a spot market exchange platform, BTC’s IT business consists of IBIT, which is designed to focus solely on spot Bitcoin, while ETHA similarly concentrates solely on spot Ethereum. These funds control about $21.6bn in assets, while Grayscale has four products controlling about $21.3bn. The data shared by blockchain intelligence firm Arkham proves that BlackRock has become one of the market leaders rather quietly.
https://twitter.com/ArkhamIntel/status/1824402549744734230 Grayscale Faces Investor Shift Pressure
Recent actions by leading financial institutions underscore this change in market leadership. For instance, Morgan Stanley stated it had entirely, or close to fully, divested from its $269.9m indirect exposure to GBTC and instead invested in BlackRock's IBIT. Likewise, Goldman Sachs disclosed that it owns nearly 6.96 million IBIT shares worth $235 million, which proves that large institutions are increasingly investing in BlackRock's products.
Comparing BlackRock's IBIT fund to Grayscale's situation, IBIT has shown limited gross outflows since it was launched, while Grayscale's position seems to be under more and more pressure. Traditionally, Grayscale dominates the investment space, but now, with emerging competitors in the form of ETFs, there are new conditions. Some observers have argued that Grayscale faces stiff competition from new rivals in a market it once led, with BlackRock as the most apparent example.
With BlackRock's increasing interest in offering ETFs that cover cryptocurrencies, there can be other changes across the funds market. However, the case of BlackRock indicates that the structure of crypto investment is changing, and new players can shape the market.
The post BlackRock’s ETFs Now Outshine Grayscale’s—A New Era in Crypto Funds appeared first on Crypto News Land.