Through its ETFs, BlackRock has surpassed Grayscale as the largest holder of on-chain assets, signalling growing institutional confidence in digital assets like Bitcoin and Ethereum. As of Friday, BlackRock’s ETF holdings in IBIT and ETHA reached $21.22 billion, narrowly exceeding Grayscale’s $21.20 billion across its GBTC, BTC Mini, ETHE, and ETH Mini funds, according to Arkham Intelligence.

Despite this, Grayscale still holds a larger overall balance due to its GDLC fund, which manages about $460 million. However, BlackRock’s rapid rise, driven by its Bitcoin ETFs launched in January, makes it a powerful competitor in crypto.

Bloomberg analyst Eric Balchunas predicts that BlackRock’s IBIT ETF could surpass Satoshi Nakamoto’s Bitcoin holdings by 2025. Major financial institutions like Goldman Sachs and DRW Capital have increased their holdings in BlackRock’s ETFs, highlighting a shift away from Grayscale, which struggles with customer redemptions and high fees.

BlackRock CEO Larry Fink has also embraced Bitcoin, calling it “digital gold” and a legitimate financial instrument offering uncorrelated returns, particularly in uncertain economic times.