BlackRock ETFs Surpass Grayscale in On-Chain Holdings for the First Time

• BlackRock’s crypto ETFs have surpassed Grayscale’s holdings for the first time.
• BlackRock assets reach $21.22 billion compared to Grayscale’s $21.20 billion.
• Grayscale’s GBTC and ETHE continue to experience substantial outflows.

In a remarkable turn of events in the ETF market, BlackRock’s ETFs have overtaken Grayscale’s holdings. According to data from Arkham Intelligence, BlackRock’s ETFs—specifically IBIT (Bitcoin ETF) and ETHA (Ethereum ETF)—now hold more assets on-chain than Grayscale’s well-established funds, including GBTC (Grayscale Bitcoin Trust) and ETHE (Grayscale Ethereum Trust).

As of the latest update, BlackRock’s ETF holdings stand at an impressive $21.22 billion, narrowly surpassing Grayscale’s $21.20 billion. This marks the first time BlackRock’s collective holdings have exceeded those of Grayscale, which has long been a leading force in the cryptocurrency ETF space.

The shift underscores BlackRock’s growing influence and the increasing confidence institutional investors place in its crypto offerings. BlackRock has overtaken Grayscale amid continued inflows on its side and a contrasting, continuous drain observed in Grayscale’s ETFs.

For instance, at the end of trading on Friday, BlackRock’s IBIT saw an inflow of $20.4 million, while Fidelity’s FBTC recorded an even higher positive flow of $61.3 million. Other ETFs, including those from Ark, Bitwise, and Franklin, also reported inflows.

Meanwhile, Grayscale saw a massive outflow of $72.9 million. This single large withdrawal weakened the net flow of the U.S. Bitcoin spot ETF market inflow on Friday to $35.9 million.

To put this in perspective, Grayscale’s GBTC has not recorded any positive flow so far this month, compared to BlackRock, which has yet to see an outflow. Grayscale last saw an inflow on July 19. 

Since the inception of Bitcoin spot ETFs in the U.S., Grayscale has experienced an astonishing $19.64 billion drain, while BlackRock has seen over $20 billion in inflows during the same period.

The outflow from Grayscale is not unique to its Bitcoin ETF. In fact, the Ethereum spot ETF that commenced trading just last month has already been drained of $2.4 billion, while BlackRock’s ETHA has seen $977 million in inflows.

While Grayscale has been a pioneer in bringing digital assets to a broader audience through its trusts, BlackRock’s entrance and rapid ascent in the ETF market highlight the evolving landscape of institutional crypto investments.