BlackRock overtakes Grayscale as world’s largest digital asset manager

BlackRock, the world’s largest fund manager, has officially surpassed Grayscale to become the top digital asset manager globally in terms of onchain reserves as of August 21, 2024.

This milestone marks a significant shift in the digital assets landscape, where Grayscale had long held the crown, particularly with its GBTC and ETHE products.

BlackRock’s assets under management (AUM) reached an unprecedented $10.65 trillion in Q2 2024, up from $9.43 trillion in 2023.

In the digital asset sector, BlackRock now holds $21.527 billion in onchain assets, edging out Grayscale, which holds $21.457 billion, giving BlackRock a $70 million advantage.

The transition in leadership is attributed to BlackRock’s substantial inflows of both Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) since the launch of its funds IBIT (iShares Bitcoin Trust) and ETHA (iShares Ethereum Trust).

While Grayscale’s GBTC and ETHE experienced rapid growth initially, their transition to publicly traded ETFs led to significant outflows.

GBTC has seen $19.66 billion in outflows since January 11, 2024, one of the largest divestments in ETF history, while ETHE has lost $2.47 billion since going public on July 23.

In contrast, BlackRock’s ETHA fund surpassed the $1 billion mark in net inflows since July 23, while IBIT attracted $20.54 billion in cumulative net inflows since January 11.

BlackRock’s ability to attract such significant inflows highlights its growing dominance in the digital assets space, and its funds are likely to maintain their lead over Grayscale in the foreseeable future.

The rise of BlackRock in the digital assets arena reflects the increasing institutional interest in cryptocurrencies, with major asset managers now playing a pivotal role in shaping the market.

As BlackRock continues to expand its offerings in the crypto space, its position as the largest digital asset manager is expected to strengthen, further distancing itself from competitors like Grayscale.