BlackRock Sets to Overtake Grayscale Products with $4B More

BlackRock is set to catch up with Grayscale’s products with a difference of less than $4 billion

BlackRock’s hot new Bitcoin ETF product is quickly catching up with Grayscale’s regarding assets under management (AUM), with the difference currently being less than $4 billion.

The BlackRock iShares Bitcoin Trust (IBIT) currently has $18.1 billion in assets. The Grayscale Bitcoin Trust (GBTC) holds $21.9 billion. This is a $3.8 billion gap.

Last Monday, the gap in assets under control between the two funds was $6 billion. The deficit is narrowing swiftly. 

IBIT has grown in popularity after receiving trading permission from the United States Securities and Exchange Commission in January. The product is from the world’s largest and most famous asset manager. It also charges modest fees of 0.12% for the first 12 months and 0.25% afterward.

GBTC may be a household name in the crypto world due to the lengthy wait before converting to a real spot ETF. However, its cost is 1.5%, implying that investors are cashing out to switch to cheaper alternatives.

The fund is also rapidly redeeming shares as failing crypto firms with exposure to the product seek to recoup monetary losses for ex-clients as part of bankruptcy proceedings. 

As a result, the fund has lost hundreds of millions of dollars. However, Grayscale CEO Michael Sonnenshein told Reuters on Wednesday that outflows were reaching “equilibrium.”