BlackRock overtakes Grayscale as top digital asset manager

On August 21, 2024, BlackRock achieved a significant milestone by surpassing Grayscale to become the largest digital asset manager based on onchain reserves.

For years, Grayscale had held the top spot in the digital asset management space, thanks to its over-the-counter (OTC) funds such as GBTC and ETHE.

However, this landscape has shifted dramatically.

BlackRock, renowned as the world’s largest fund manager, now leads in the digital asset sector with a portfolio valued at $21.527 billion.

This is notably higher than Grayscale’s onchain assets, which are valued at $21.457 billion.

The shift is largely attributed to BlackRock’s strategic investments and expansion into digital assets.

Since launching its IBIT and ETHA funds, BlackRock has seen substantial inflows.

IBIT, which focuses on Bitcoin, and ETHA, which targets Ethereum, have significantly contributed to BlackRock's ascent.

Specifically, BlackRock’s ETHA has surpassed the $1 billion mark in net inflows since its introduction, while IBIT has attracted a remarkable $20.54 billion in cumulative net inflows since January 11, 2024.

In contrast, Grayscale’s funds have struggled since their public debut.

GBTC has experienced $19.66 billion in outflows since January, marking one of the largest divestments in ETF history.

ETHE has also faced a decline, with $2.47 billion in outflows since it went public on July 23, 2024.

This outflow trend has impacted Grayscale’s overall position in the market.

BlackRock’s total assets under management (AUM) have reached an all-time high of $10.65 trillion, up from $9.43 trillion in the previous year.

The dominance of BlackRock’s spot ether and bitcoin funds is expected to continue, solidifying its lead in the digital asset space.

This development underscores BlackRock’s successful strategy in capturing significant market share and expanding its influence in the cryptocurrency market.