BlackRock Bitcoin & Ether ETFs Outpace Grayscale ETF AUM But There’s A Catch

For the first time ever, BlackRock’s Bitcoin and Ethereum ETFs have now surpassed Grayscale ETF offerings in terms of assets under management (AUM). This feat is attributed to the robust inflows into IBIT and ETHA since inception. However, the other ETF issuer lags behind as GBTC and ETHE witnessed heavy outflows despite the mini ETFs registering inflows.

BlackRock Vs. Grayscale ETF AUM Details

According to Arkham Intelligence, BlackRock’s ETFs, IBIT and ETHA, currently hold a collective value of $21.22 billion. In contrast, Grayscale’s ETFs, which include GBTC, BTC Mini, ETHE, and ETH Mini, collectively hold $21.20 billion. This development marks the first time BlackRock’s holdings have overtaken Grayscale ETF AUM.

Moreover, it positions IBIT issuer as the largest crypto ETF provider globally. The IBIT ETF is leading with an AUM of $20.54 billion, holding 348,609 BTC. Recently, the BlackRock Bitcoin ETF bagged investment from Morgan Stanley as the banking giant filed its second quarter 13F filing. Whilst, the asset manager’s Ethereum ETF, ETHA, holds $847 million with 318,180 ETH.

Grayscale, a long-standing leader in the crypto investment space, still maintains a significant presence. Grayscale’s GBTC, the firm’s flagship product alone holds a whopping $13.17 billion in AUM. Additionally, the investment firm’s Ethereum Trust (ETHE) holds $4.82 billion with $924 million in ETH Mini ETF.

However, the comparison between both ETF issuers’ crypto holdings is nuanced. Arkham Intelligence notes that while BlackRock hasn’t outshined Grayscale’s overall balance. The latter’s balance includes its Digital Large Cap Fund (GDLC) with around $460 million in AUM. The fund holds 93.29% in BTC and ETH, boosting the overall holdings.

Latest Bitcoin & Ethereum ETF Flows

On Thursday, August 15, the crypto ETF market witnessed contrasting trends between Bitcoin and Ethereum. BTC ETFs experienced a positive flow, signaling continued investor confidence, while Ether ETFs saw significant outflows, reflecting a cautious outlook on the asset’s short-term prospects.

Bitcoin ETFs recorded a net positive flow of $11.1 million. Fidelity led the inflows with $16.2 million, followed by Bitwise with $6.2 million. Grayscale’s BTC Mini ETF also contributed significantly, with $13.7 million in inflows. Despite the overall positive sentiment, GBTC faced substantial outflows, totaling $25 million. Meanwhile, BlackRock’s IBIT remained stable with no recorded inflows or outflows.

On the other hand, the spot ETH ETF outflows surged, with a total negative flow of $39.2 million. The most significant movement came from the Grayscale ETF (ETHE) which recorded an outflow of $42.5 million. This substantial withdrawal indicates a growing uncertainty among investors regarding Ethereum’s short-term performance.

Despite the negative sentiment, not all ETH ETFs saw outflows. Fidelity’s Ether ETF (FETH) managed to attract a modest inflow of $2.54 million. However, this was not enough to counterbalance the overall trend, as the net AUM of spot Ether ETFs has now dropped to $7.16 billion, a significant decline from their peak of over $10 billion at inception.