Grayscale’s market share of cumulative spot bitcoin ETF trading volume fell to a record low last Friday with competing products from BlackRock and Fidelity adding to their assets under management.
When Grayscale’s spot bitcoin ETF began trading in January, it had approximately $30 billion under management and dominated daily trading volume.
But when Grayscale’s ETF ended trading on Friday, taking less than 20% of the total volume traded for the first time since the new products were introduced, that dominance appeared to be waning.
The ETFs from BlackRock and Fidelity accounted for 69% of all trading volume on Friday while Grayscale’s GBTC fund, converted into an offering, initially captured half of the trading activity when spot bitcoin ETFs debuted in January.
Almost 47% of Friday’s trading volume was accounted for by BlackRock’s spot bitcoin ETF. The products offered by BlackRock and Fidelity controlled nearly 80% of the total cumulative assets under management for all spot bitcoin ETFs, except Grayscale.
Initially, Grayscale’s fund experienced outflows, shedding billions. However, it rebounded with increased total assets, likely linked to rising Bitcoin prices. In contrast, BlackRock and Fidelity consistently see growing product sizes from substantial capital inflows.
Over the weekend, BitMEX Research posted to X, “The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC’s assets for the first time.”
Compared to Fidelity and BlackRock, Grayscale’s spot bitcoin ETF has a higher management or sponsor fee. BlackRock charges 0.12% on assets under $5 billion and 0.25% on assets above that amount. The business charges 1.5%. There won’t be any fees from Fidelity until August.
Also Read: BlackRock’s IBIT ETF Shatters Records with $788 Million Inflow
