[NEWS] BlackRock becomes the world's largest crypto spot ETF issuer

The world's largest asset manager, BlackRock, has overtaken Grayscale in assets under management (AUM) of crypto spot ETFs, becoming the world's largest manager.

BlackRock soon overtook Grayscale, with Bitcoin (BTC) and Ethereum (ETH) spot ETFs now at $22 billion.

Grayscale manages $20.7 billion in assets, including Solana (SOL) and Chainlink (LINK) ETFs.

The background to this is that the launch of the Ethereum spot ETF on July 23 accelerated and attracted large inflows, while the Grayscale Ethereum Trust (ETHE) has seen continued outflows.

Institutional interest in Bitcoin and Ethereum has been a key driver of BlackRock's growth in this area.

The approval of spot ETFs has strengthened investor confidence in crypto assets.

In particular, BlackRock's Ethereum spot ETF recorded a net inflow of $966 million, while Grayscale recorded an outflow of $2.3 billion.

The competition between BlackRock and Grayscale remains fierce, with a $1.5 billion difference between the two companies' Bitcoin spot ETFs.

Grayscale Bitcoin Trust (GBTC) is in the lead with $18.7 billion in assets under management, but is experiencing continuous outflows. BlackRock's iShares Bitcoin Trust (IBIT) has continued to attract inflows to $17.2 billion, and it is only a matter of time before it overtakes.

Grayscale is investing in advertising to maintain its position. BlackRock's selling point is its low fees. BlackRock's Ethereum spot ETF has a fee rate of 0.25%, while Grayscale charges 2.5%.

BlackRock's rise in the crypto spot ETF space reflects a broader trend toward more accessible and affordable financial products.

Low fees sell

As Grayscale struggles to regain its leadership position, the future of digital assets looks increasingly dominated by financial industry kings like BlackRock.

BlackRock is the world's largest asset manager in the past, and it has a track record of maintaining trust and security. Add low fees to that, and investors will be forced to switch from Grayscale to BlackRock.

BlackRock continues to attract investors with competitive products, efficient asset management, and continued innovation, such as its large-scale entry into the preliminary RWA market.

Reference:Arkham
Image: Shutterstock

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