Grayscale, BlackRock and Fidelity Dominate in Bitcoin ETF’s $10B Trading Volume on Third Day
In Brief
On the third day of Bitcoin ETF’s trading, Grayscale, BlackRock and Fidelity collectively secured 90% of the growing market share.
Over the course of the third day of trading, the top three spot Bitcoin exchange-traded funds (ETFs) have established a dominant presence by collectively securing nearly 90% of the growing market share. Grayscale, BlackRock and Fidelity among the 11 spot Bitcoin ETFs currently in operation, emerged as leaders.
According to insights provided by Bloomberg analyst James Seyffart, the total trading volume for US Bitcoin spot ETFs approached $10 billion with Grayscale GBTC leading a three-day trading volume gaining $5.174 billion, followed by BlackRock’s IBIT at $1.997 billion, and Fidelity’s FBTC with $1.479 billion, resulting in a cumulative total of $9.771 billion.
At the time of writing, 24 hours trading volume of these funds are $371.71 million, $321.92 million and $1.01 million respectively, as per a Blockworks’ ETF Tracker. The trading activity on the third day notably decreased compared to the $3.1 billion observed on Friday.
In contrast, the first day of trading, which took place last Thursday, recorded a total volume of $4.6 billion.
Updated due to scaling error in bars for Assets column
— James Seyffart (@JSeyff) January 16, 2024
h/t @quantian1 pic.twitter.com/HuUZELImwL
Grayscale’s ETF Faces Outflows While Competitors Gain Traction
Although Grayscale has maintained a prominent position in terms of volume within the realm of new crypto-based instruments, it’s worth noting that the firm’s ETF, a transformation of its flagship GBTC fund, has encountered significant outflows. This insight comes from Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence.
Based on data shared by Balchunas on the social media platform X, Grayscale’s spot Bitcoin ETF has experienced a decrease of over $500 million in value since its commencement of trading last week. As per his analysis, BlackRock’s ETF is considered the most likely to surpass Grayscale as the leader in liquidity.
Notably, the funds offered by BlackRock and Fidelity have witnessed inflows exceeding $400 million since the commencement of their trading activities. Balchunas asserts that the trading activity for the new funds has been robust, with cumulative volume surpassing $9.5 billion over the initial three days of trading.
SEC’s Approval Paves the Way for a Wave of New Crypto ETFs
The news followed the groundbreaking approval from the US SEC for the new cryptocurrency-based financial instruments last week. Soon after the approval, BlackRock expressed its plans to introduce a product similar to the spot Bitcoin ETF for Ethereum (ETH), the native token of the Ethereum blockchain, as part of its ongoing exploration into tokenization.
Currently, seven asset managers are in the pool of applicants vying for SEC approval for spot Ethereum ETFs. The SEC is set to make decisions on these applications by the spring, facing upcoming deadlines.
As spot Bitcoin ETFs continue to witness significant growth in trading volume each day, asset managers are eyeing other dominating cryptocurrencies to launch additional exchange-traded products.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
