BlackRock and Fidelity Bitcoin ETFs Give Grayscale Tough Fight in Trading Volumes

UTC by Bhushan Akolkar · 2 min read
BlackRock and Fidelity Bitcoin ETFs Give Grayscale Tough Fight in Trading Volumes
Photo: Depositphotos

On Tuesday’s market close, BlackRock and Fidelity recorded trading volumes of $383 million and $288 million, while Grayscale maintained the lead with $396 million.

BlackRock and Fidelity Investments have emerged as the top Bitcoin ETF issuers in terms of the net inflows of their investment products. On Tuesday, both these players gave a tough fight to the Grayscale Bitcoin Trust (GBTC) in terms of daily trading volumes.

After converting its GBTC product into a Bitcoin ETF, Grayscale has been seeing massive outflows in the last 20 days. The AUM has dropped more than 20% from its peak of $25 billion earlier this month as the money moves into Bitcoin ETFs from BlackRock and Fidelity.

In terms of the daily trading volumes, BlackRock and Fidelity rank just after Grayscale. So far since the Bitcoin ETF launch, Grayscale’s ETF has seen a reduction of over $5 billion in assets under management, as reported by Bloomberg Intelligence ETF analyst James Seyffart. In contrast, both BlackRock and Fidelity’s products have experienced a net increase of over $2 billion.

At the closing of the market on Tuesday, BlackRock and Fidelity reported trading volumes of $383 million and $288 million, respectively, based on data compiled by The Block from Yahoo Finance. On the other hand, Grayscale retained the top position with a trading volume of $396 million.

Since the start of this month, the three issuers have consistently been the major contributors to total trading volume, representing, at times, around 90% of all buying and selling activity. In contrast, other spot bitcoin ETFs from providers such as Invesco, Galaxy, Franklin Templeton, and Ark Invest have lagged significantly behind the top three. The aggregated daily trading volume for Tuesday stood at approximately $1.2 billion.

Growing Competition Among Bitcoin ETF Issuers

As per the latest announcement, the Invesco Galaxy Bitcoin ETF (BTCO) will lower its expense ratio from 0.39% to 0.25%. Additionally, the fund plans to waive its fees for the initial six months or until it amasses $5 billion in assets, whichever milestone is achieved first.

Despite the fee reduction on Monday, it’s worth noting that BTCO does not hold the title of the most cost-effective spot Bitcoin ETF. Franklin Templeton’s fund boasts a post-waiver expense ratio of 0.19%, making it the most economical among spot Bitcoin ETFs. On Tuesday, BTCO’s shares saw a 0.97% increase, mirroring the rise in Bitcoin’s price.

The Bitcoin ETF sector is experiencing a notable uptick in trading volumes, approaching a total of $27 billion. This increased investment activity is considered a positive indicator for the digital assets market, reflecting a rising level of mainstream acceptance and bolstering investor confidence.

Funds & ETFs, Market News, News
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