BlackRock and Fidelity Challenge Grayscale’s Dominance in Bitcoin ETF Trading Volumes

BlackRock and Fidelity Challenge Grayscale’s Dominance in Bitcoin ETF Trading Volumes

Crypto News – At the close of the market on Tuesday, BlackRock and Fidelity reported trading volumes of $383 million and $288 million, respectively, while Grayscale maintained its lead with a trading volume of $396 million.

BlackRock and Fidelity Investments have emerged as the top Bitcoin ETF issuers in terms of net inflows for their investment products. On Tuesday, both of these players presented a formidable challenge to the Grayscale Bitcoin Trust (GBTC) in daily trading volumes.

Since converting its GBTC product into a Bitcoin ETF, Grayscale has witnessed significant outflows over the past 20 days. Assets under management (AUM) have plummeted by more than 20% from their peak of $25 billion earlier this month, as funds have flowed into Bitcoin ETFs offered by BlackRock and Fidelity.

Regarding daily trading volumes, BlackRock and Fidelity closely follow Grayscale. Since the launch of Bitcoin ETFs, Grayscale’s ETF has seen a reduction of over $5 billion in assets under management, as reported by Bloomberg Intelligence ETF analyst James Seyffart. In contrast, both BlackRock and Fidelity’s products have experienced a net increase of over $2 billion.

At Tuesday’s market close, BlackRock and Fidelity reported trading volumes of $383 million and $288 million, respectively, based on data compiled by The Block from Yahoo Finance. Meanwhile, Grayscale retained its top position with a trading volume of $396 million.

Throughout this month, these three issuers have consistently been the major contributors to the total trading volume, accounting for as much as 90% of all buying and selling activity at times. In contrast, other spot Bitcoin ETFs from providers like Invesco, Galaxy, Franklin Templeton, and Ark Invest have significantly lagged behind the top three. The aggregate daily trading volume for Tuesday amounted to approximately $1.2 billion.

Intensifying Competition Among Bitcoin ETF Issuers

In a recent announcement, the Invesco Galaxy Bitcoin ETF (BTCO) revealed plans to reduce its expense ratio from 0.39% to 0.25%. Additionally, the fund intends to waive its fees for the first six months or until it amasses $5 billion in assets, whichever milestone comes first.

However, it’s important to note that even with the fee reduction on Monday, BTCO does not hold the title of the most cost-effective spot Bitcoin ETF. Franklin Templeton’s fund boasts a post-waiver expense ratio of 0.19%, making it the most economical among spot Bitcoin ETFs. On Tuesday, BTCO’s shares saw a 0.97% increase, mirroring the rise in Bitcoin’s price.

The Bitcoin ETF sector is witnessing a notable surge in trading volumes, approaching a total of $27 billion. This increased investment activity signifies a positive indicator for the digital assets market, reflecting a growing level of mainstream acceptance and bolstering investor confidence.