Grayscale, BlackRock and Fidelity dominate spot ETF market with nearly 90% of volume on third day of trading

Markets • January 16, 2024, 2:12PM EST

Published 1 minute earlier on

Quick Take

The top three spot bitcoin ETFs are accounting for the lion’s share of volume as day three of trading enters into the final hours on Tuesday.
The day’s total volume is trending to finish below the $3 billion seen last Friday.

In a third day of trading, the top three spot bitcoin ETFs by trading volume have positioned themselves heads and shoulders above the rest by nabbing just about 90% of the burgeoning market.

Funds offered by Grayscale, BlackRock and Fidelity are the clear leaders among the 11 spot bitcoin ETFs currently trading. After gaining approval, the new instruments began trading last week.

With just under two hours left to trade in the day, the three top funds had generated about $1.2 billion of the $1.4 billion of total trading volume, according to data from Yahoo Finance compiled by The Block.

The third day is so far trending to finish well below the $3.1 billion seen on Friday, although spikes in volume near the end of trading are not uncommon and could alter that trajectory, according to The Block Research. Total volume came in at $4.6 billion on Thursday's day one of trading last week.

BlackRock may become 'Liquidity King'

While Grayscale has been the clear leader in terms of volume among the new crypto-based instruments, the firm's ETF, which is a conversion of its flagship flagship GBTC fund, has experienced considerable outflows, according to Bloomberg Intelligence senior ETF analyst Eric Balchunas.

Grayscale's spot bitcoin ETF has shed more than $500 million since it started trading last week, according to Balchunas, who posted data to the social media platform X on Tuesday. BlackRock's ETF is the "most likely to overtake" Grayscale as "Liquidity King," he also said.

The funds offered by BlackRock and Fidelity have, in comparison, seen inflows over $400 million since they began trading.

Overall, Balchunas said trading activity for the new funds was healthy. Cumulative volume over the first three days is now over $9 billion.

"About the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history)," Balchunas added.

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About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.