BlackRock Is Now The Largest Crypto ETF Issuer, Outshining Grayscale

Leading asset management firm BlackRock Inc. has outpaced Grayscale Investments as the largest crypto Exchange-Traded Fund (ETF) issuer. This marks a massive milestone for BlackRock as it is the first time it has taken the top crypto ETF issuer position from Grayscale.

Popular data analytics platform Arkham Intelligence posted the update on social media X. According to the details, BlackRock’s ETF holdings amount to $21,217,107,987, flipping Grayscale’s $21,202,480,698. This move demonstrates BlackRock’s strong push to become a reputable force in the ETF market.

BlackRock Shines in Bitcoin and ETF Market

Arkham noted that BlackRock’s move to the top spot in the ETF sector was triggered by increased adoption of its iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust ETF (ETHA). Together, holdings from these ETFs surpassed Grayscale’s ETFs, which include GBTC, BTC Mini, ETHE, and ETH Mini.

Data from FarSide Invest shows IBIT is leading other spot Bitcoin ETFs, with total inflows reaching $20.3 billion. BlackRock’s Bitcoin ETF has been quite a huge success since it commenced trading in general, recording maximum single-day inflows above $849 million.

On the other hand, Grayscale Bitcoin Trust (GBTC) has experienced huge outflows since it launched. According to FarSide, total outflows from GBTC now amount to $19.5 billion. This suggests investors are moving their money away from GBTC to other ETFs that appear favorable to them.

The high outflows from GBTC can be attributed to its high sponsor fees, among other reasons. Unlike other spot Bitcoin ETF issuers, Grayscale has the highest fee, at 1.5%.

Meanwhile, a similar scenario exists in the spot Ethereum ETF ecosystem. BlackRock’s ETHA clinched the top spot, with total inflows reaching $967.1 million, according to FarSide. ETHA recorded the highest single-day inflow of $109.9 million on August 6, placing it among the best six-performing ETFs launched this year.

For Grayscale, its Ethereum ETF, ETHE, is experiencing outflows like its Bitcoin counterpart. Total outflows from ETHE come in around $2,386 billion. Upon launching on July 23, ETHE recorded outflows of $180 million in the same week, reducing the total net asset value for all funds with a net outflow of $406.4 million.

Despite these outflows, the other eight Ethereum ETFs have had positive overall inflows. For instance, Fidelity’s FETH has amassed inflows of $360.3 million, and Bitwise’s ETHW boasts of $305.2 million.

Impact of BlackRock’s ETF Milestone on Bitcoin and Ethereum’s Price

Bitcoin and Ethereum have had their fair share of market volatility in recent weeks. This resulted in a huge drain from exchanges, leading to losses in the value.

With BlackRock’s recent ETF milestone reached, analysts and investors anticipate a recovery in the price of Bitcoin and Ethereum. This is based on the premise that more crypto investors will begin to flood the market, strengthened by BlackRock’s commitment to Bitcoin and Ethereum via its ETFs.

Moreover, BlackRock’s CEO, Larry Fink, has expressed bullishness on Bitcoin’s long-term viability, potentially endorsing the coin for peers to invest in.