CDS Crypto News Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs
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Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

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Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

Crypto News – In the emerging landscape of spot Bitcoin ETFs, fierce competition is rapidly taking shape. In the first month alone, there was a notable influx of $1.5 billion, equivalent to approximately 32,000 Bitcoins, as reported by BitMEX Research. Furthermore, the combined trading volume of these ETFs has surpassed a significant milestone, reaching over $30 billion, according to data from The Block.

Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

A notable shift in dominance among these Bitcoin ETFs has been observed. Grayscale Bitcoin Trust (GBTC), which initially held nearly 50% of the trading volume on its debut, has seen its market share decline to 38% by February 2nd.

In contrast, BlackRock‘s IBIT and Fidelity’s FBTC ETFs have witnessed substantial growth in their market share, with approximately 25% and 20% increases, respectively. This shift can be attributed primarily to the competitive fee structures offered by these ETFs, with GBTC charging 1.5% in fees, while FBTC and IBIT have more attractive fees of 0.25%.

Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

GBTC, which initially held 620,000 BTC before the ETFs began trading, now holds approximately 477,000 Bitcoins, representing a significant 26% drop from its peak.

Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

This substantial decrease in GBTC’s holdings reflects persistent selling pressure, even though the outflows are gradually slowing down. Moreover, there is a growing likelihood of these Bitcoins flowing into the more cost-effective ETF options. Specifically, Bloomberg ETF analysts estimate that one-third of the outflows from GBTC are being redirected into these spot ETFs.

Crowded Competition Emerges in the Emerging World of Spot Bitcoin ETFs

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