BlackRock’s bitcoin ETF is almost bigger than Grayscale’s fund.

Grayscale Investments is currently in the lead, but BlackRock is quickly rising to challenge them by vying for the most assets managed by exchange-traded funds that track bitcoin prices.

As soon as spot bitcoin ETFs came out in January, Grayscale stood out because its Grayscale Bitcoin Trust managed about $24 billion in assets. However, money was already leaving its huge ETF. When it came to assets, Grayscale was at the top of the list because it turned its existing bitcoin fund into an ETF on the same day that other spot bitcoin ETFs went public after getting approval from the SEC.

Information on Grayscale’s website shows that the GBTC Grayscale Bitcoin Trust ETF was in charge of about $19.8 billion in assets as of May 28. On the same date, BlackRock’s website showed that the iShares Bitcoin Trust IBIT, which was much cheaper, was in charge of about $19.6 billion in assets.

There is a big “fee differential” between the Grayscale Bitcoin Trust ETF and other exchange-traded funds that track spot prices of the cryptocurrency. President of the ETF Store Nate Geraci said this in a phone interview Wednesday: “simply too steep for advisers and investors to ignore.”

A lot of money has been pouring into the iShares Bitcoin Trust. This puts BlackRock and Grayscale well ahead of the other bitcoin ETFs in terms of assets under management.

Following the ARK 21 Shares Bitcoin ETF ARKB with $3.3 billion in assets under management and the Bitwise Bitcoin ETF Trust BITB with $2.5 billion, the Fidelity Wise Origin Bitcoin Fund FBTC is the third largest, with about $11.2 billion in assets under management.

FactSet data as of May 28 shows that about $17.5 billion has been taken out of Grayscale Bitcoin Trust so far this year, including in the last week and month. The iShares Bitcoin Trust, on the other hand, has gotten a lot of money—about $16.4 billion, according to FactSet data.

Spot bitcoin ETFs that compete with Grayscale’s fund are cheaper.

After their funds opened, BlackRock, Fidelity, and Bitwise all let investors avoid fees.

In this case, Fidelity’s website says that until August 1, investors don’t have to pay a fee to buy its spot bitcoin ETF. From January 11 to the present, BlackRock has waived some of its fees for the first $5 billion in assets. This is shown on the company’s website. Bitwise’s website says that until July 11, it will not charge any fees for the first $1 billion in assets.

Grayscale representatives didn’t answer emails right away when asked for comment on the money leaving its spot bitcoin ETF this year.

Geraci said that Grayscale would have lost “substantial revenue” if it had lowered the fees on its bitcoin fund to the same level as competing exchange-traded funds (ETFs). “I do think that GBTC will continue to bleed” assets, he said, referring to the spot bitcoin ETF that the company runs.

A big part of the company’s assets is the Grayscale Bitcoin Trust. The company said earlier this month that its total assets were worth around $30 billion when it announced its new CEO.

But Geraci also said that some investors might stay with the ETF because selling it would cause a big tax event after bitcoin prices went up.

CoinDesk data shows that Bitcoin BTCUSD, 1.04% was worth about $67,204 on Wednesday afternoon. That is a lot more than what it was at the end of last year.

Shares of the Grayscale Bitcoin Trust have jumped around 47% since Jan. 11, while the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund are each up around 44% since then, based on Wednesday afternoon trading levels, according to FactSet data.

The “wild card” for Grayscale is the mini version of its spot bitcoin ETF that it’s planning to launch, said Geraci. “I expect them to price that extremely competitively,” potentially undercutting rival funds and providing the firm a way to compete long-term for assets, he said.

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