BlackRock surpasses Grayscale in crypto holdings, becoming the largest asset manager in the sector. Marking a turning point in the crypto investment landscape, solidifying BlackRock’s leadership position in global markets.
BlackRock Becomes Leader in Cryptocurrency-Based ETFs
For several years, cryptocurrency investors have been eagerly awaiting the launch of spot ETFs based on assets such as Bitcoin and Ethereum. In 2024, these ETFs finally saw the light of day, attracting nearly $17 billion in investments.
However, while these products allow financial institutions to easily hold BTC or ETH and offer their clients exposure to their prices, they do not guarantee the censorship-resistance and transportability properties offered by the Bitcoin blockchain.
📈 To go further – Everything you need to know about Bitcoin spot ETFs
Among the issuers of Bitcoin and Ethereum spot ETFs, 2 stand out in particular.
Grayscale, a pioneer in the creation of cryptocurrency investment funds since 2013, has been able to take advantage of its lead to capture a significant share of capital.
Here are the details of the cryptocurrencies managed by Grayscale:
- 227,000 BTC in its Grayscale Bitcoin Trust (GBTC), approximately $13.3 billion;
- 32,200 BTC in its Bitcoin in its Grayscale Bitcoin Mini Trust (BTC), approximately $1.89 billion;
- 1.8 million ETH in its Grayscale Ethereum Trust (ETHE), approximately $4.89 billion;
- 360,000 ETH in its Grayscale Ethereum Mini Trust (ETH), approximately $950 million.
In total, Grayscale manages about $21 billion in Bitcoin and Ether.
For its part, BlackRock, which is the world's leading asset manager with more than 10,000 billion dollars of assets under management, has also established itself, now managing:
- 345,000 BTC in its iShares Bitcoin Trust (IBIT), approximately $20.2 billion;
- 320,000 ETH in its iShares Ethereum Trust (ETHA), approximately $840 million.
In total, BlackRock also manages approximately $21 billion in Bitcoin and Ether.
According to data from Arkham Intelligence released last Friday, BlackRock's holdings ($21,217,107,987) just surpassed those of Grayscale ($21,202,480,698), with a difference of about $15 million.
Trade Republic: The Easiest Way to Buy Cryptocurrencies
How can we explain such progress by BlackRock?
This achievement is all the more impressive when we consider that Grayscale's funds have been around for several years and held over 600,000 BTC before the launch of the Bitcoin spot ETFs..
Since January 2024, Grayscale has seen its BTC holdings decline by approximately 63%, ceding its market leadership position to BlackRock.
📰 Also read in the news – IMF considers introducing a targeted tax on Bitcoin miners and artificial intelligence (AI) servers
This situation mainly stems from the uncertainty surrounding the underlying assets of the GBTC and ETHE funds.Over the years, these funds have shown a decorrelation with the real price of Bitcoin and Ether, with gaps sometimes reaching more than 50% between the spot market and the price of Grayscale funds.
When converted into cash ETFs, the prices of these funds returned to parity, confirming the presence of the underlying assets.
This rebalancing allowed investors who bought BTC or ETH at a discount to make significant profits.which resulted in large volumes of withdrawals.
Ledger: the best solution to protect your cryptocurrencies 🔒
Sources: The Block, Arkham
The #1 Crypto Newsletter 🍞
Receive a daily crypto news recap by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products, or services. Some links in this article may be affiliate links. This means that if you purchase a product or sign up for a site from this article, our partner pays us a commission. This allows us to continue to provide you with original and useful content. There is no impact on you and you can even get a bonus for using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and only invest within the limits of their financial capacities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with a high return potential implies a high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of these savings. Do not invest if you are not prepared to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I have no choice but to share my knowledge and transmit the passion I have for the blockchain universe. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
278 articles
