BlackRock’s IBIT Dethrones GBTC in Bitcoin ETF Daily Volume

• BlackRock’s IBIT has surpassed Grayscale’s GBTC in daily trading volume.
• IBIT and FBTC have experienced significant net inflows, while GBTC has seen net outflows.
• The total trading volume for all spot Bitcoin ETFs has neared $27 billion.

In a significant shift within the U.S. Bitcoin exchange-traded fund (ETF) landscape, BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken Grayscale Investments’ Bitcoin Trust ETF (GBTC) in terms of daily trading volume. This marks a turning point for the fledgling market, which has seen a flurry of activity since the launch of spot Bitcoin ETFs in mid-January.

IBIT & FBTC See Strong Demand

While GBTC initially dominated the scene, BlackRock’s IBIT emerged victorious on Thursday, recording $302 million in trading volume compared to GBTC’s $292 million. This shift comes amidst concerns about GBTC’s net outflows of $5.6 billion since its conversion to an ETF, likely fueled by locked-in investors and higher expense ratios than competitors.

BlackRock’s IBIT and the Fidelity Wise Origin Bitcoin Fund (FBTC) have enjoyed significant net inflows, attracting $2.8 billion and $2.5 billion, respectively. This trend is further fueled by the overall increase in net inflows across all spot Bitcoin ETFs, surpassing $1 billion and reaching nearly $1.5 billion within a week.

The competitive landscape is heating up, with Invesco and Galaxy Asset Management slashing their fees to match the 0.25% charged by most rivals. This move reflects the growing pressure from newer entrants like IBIT and FBTC, offering lower costs and potentially attracting more investors.

Bitcoin ETFs Near $27 Billion Volume

The total trading volume for all spot Bitcoin ETFs is nearing $27 billion, showcasing the influx of funds and alleviating some of the bearish sentiment that had previously driven Bitcoin prices below $40,000.

This shift in leadership marks a pivotal moment for the U.S. Bitcoin ETF market. As competition intensifies and investor preferences evolve, BlackRock’s IBIT has emerged as a strong contender, potentially challenging Grayscale’s established dominance in the long run.

On the Flipside

• The reason behind the recent surge in IBIT’s trading volume is not entirely clear and could be due to temporary factors.
• The fees charged by IBIT and FBTC are still higher than those offered by some other Bitcoin ETFs, such as VanEck’s Bitcoin Strategy ETF.

Why This Matters

BlackRock’s IBIT eclipsing Grayscale’s GBTC in daily trading volume signifies a power shift within the US Bitcoin ETF landscape. Fueled by lower fees and investor preference, this competition could reshape the market, potentially impacting Bitcoin’s price and the future of crypto accessibility for mainstream investors.

If you’re interested in learning more about how BlackRock’s Bitcoin ETF is shaking up the crypto market, you can read more here:
BlackRock Bitcoin ETF Hits $2B AUM Milestone in Two Weeks

Curious about BlackRock’s concerns regarding Bitcoin ETFs? Read more here to understand the potential challenges and risks:
BlackRock Expresses Concerns to SEC Regarding Bitcoin ETFs