BlackRock Dethrones Grayscale as Largest Bitcoin (BTC) and Ethereum (ETH) ETF Holder

As of Friday, BlackRock's ETF (exchange-traded fund) became the largest collective holder in the market, surpassing Grayscale for the first time

BlackRock’s exchange-traded fund (ETF) became the largest collective holder in the market on Friday, surpassing Grayscale for the first time in on-chain holdings.

According to Arkham Intelligence, BlackRock ETF holdings, IBIT and ETHA, rose to $21,217,107,987 on Friday. This compares to Grayscale’s GBTC, BTC Mini, ETHE, and ETH Mini, which were valued at $21,202,480,698 at the time of the report.

However, Grayscale still maintains a higher overall balance than BlackRock, primarily due to its GDLC fund, which holds approximately $460 million in assets under management (AUM). Unlike BlackRock’s offerings, GDLC is not an ETF, which allows Grayscale to retain a larger share of the market.

Bitcoin ETFs began trading on January 11, and within just seven months, BlackRock has become the third-largest holder of BTC. Bloomberg ETF analyst Eric Balchunas predicts that IBIT could surpass Satoshi Nakamoto’s Bitcoin holdings by 2025, if the current growth pace continues.

“Didn’t realize US ETFs are on track to pass Satoshi in bitcoin held in October. BlackRock alone is already #3 and on pace to be #1 late next year,” Balchunas said.

Last week, digital asset investment products saw inflows totaling $176 million, with BlackRock recording $408 million in inflows. In contrast, Grayscale ETFs experienced up to $552 million in outflows, signaling a shift in investor preference.

The recent developments are unsurprising, given that BlackRock’s Bitcoin ETF has seen only one day of outflows since its launch. Recent filings show that major financial institutions like Capula Management, Goldman Sachs, DRW Capital, and several investment and retirement boards have been acquiring BlackRock’s IBIT.

In contrast, Grayscale is struggling with customer redemptions. Clients have been selling their holdings since Bitcoin and Ethereum spot ETFs gained approval. Grayscale’s high fees of 2.5%, compared to the industry average of 0.25%, are the main reason.

Fees can impact long-term performance, growing in proportion as the market expands. In response to these concerns, Grayscale introduced its new Mini ETH ETF with lower fees to address outflows from its main ETHE fund. This trend mirrors the firm’s Bitcoin Trust, which also faced substantial outflows after its conversion in January.

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