BlackRock and Fidelity spot bitcoin ETFs are on track to outpace Grayscale in daily trading volume for first time

Funds • January 30, 2024, 2:14PM EST

Published 1 minute earlier on

Quick Take

In what would be the first time since the new products began trading, spot bitcoin ETFs offered by BlackRock and Fidelity are on track to best Grayscale’s converted fund in terms of daily volume.
Grayscale’s instrument, a conversion of its flagship GBTC, has shed billions of dollars in assets under management.

After several days in a row of dominance, BlackRock and Fidelity spot bitcoin ETFs appeared on track to surpass Grayscale's fund in terms of daily volume for the first time since the products began trading more than two weeks ago.

Grayscale's fund, a conversion rather than a brand new product, has shed billions of dollars after starting with more than $25 billion in assets under management. In terms of total trading volume — buying and selling — the BlackRock and Fidelity new spot bitcoin ETFs have been ranking second and third behind Grayscale.

As of 1:15 p.m. ET on Tuesday, BlackRock and Fidelity had generated, according to Yahoo Finance data compiled by The Block, $250 million and $207 million in trading volume, respectively. Grayscale ranked third about halfway through the day with $202 million.

Since trading began this month, the three issuers have dominated total trading volume, accounting for, at times, about 90% of all buying and selling activity. Other spot bitcoin ETFs like those offered by Invesco and Galaxy, Franklin Templeton and Ark Invest have trailed far behind the top three.

So far, Grayscale's ETF has lost more than $5 billion in assets under management, according to Bloomberg Intelligence ETF analyst James Seyffart. Both BlackRock and Fidelity's products are net positive by more than $2 billion.

Total spot bitcoin ETF volume nears $27 billion

In what may be an effort to gain a competitive edge, Invesco and Galaxy Asset Management on Monday announced in a filing that the firms intend to cut their fund's fee from 0.39% to to 0.25%, which will put them on par with most rivals.

Total trading volume for all of the active spot bitcoin ETFs is nearing $27 billion, also according to Seyffart's post on Tuesday. Many market watchers and crypto enthusiasts have heralded the billions of dollars of money flowing into the new ETFs as a positive development for digital assets.

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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.