BlackRock's Bitcoin ETF Takes the Lead in Trading Volume
Date: 2024-02-04 Author: Dima Zakharov Categories: BLOCKCHAIN
The competition among managers of spot Bitcoin ETFs has a new champion: this week, BlackRock's ETF with the ticker symbol IBIT claimed the top spot in trading volume for the first time. This development comes after Grayscale's GBTC held the position for 14 consecutive days following the listing of these instruments. Let's delve into this situation and its significance.
Grayscale's GBTC became the leader among new Bitcoin ETFs for a reason. This investment vehicle existed long before spot ETFs based on the leading cryptocurrency were approved in the United States, earning it both a reputation and a substantial client base.
However, Grayscale's management sought to transform the Bitcoin Trust into a full-fledged ETF but faced rejection from the Securities and Exchange Commission (SEC). In response, Grayscale filed a lawsuit against the regulator and emerged victorious. As SEC Chairman Gary Gensler later noted, this case played a pivotal role in approving new ETF applications.
Nevertheless, GBTC's position was jeopardized due to the company's management policies. Grayscale charges a 1.5% fee for its ETF, significantly higher than other companies in the industry.
For example, the world's largest investment firm, BlackRock, set its fees at 0.25%, making it a more attractive option.
Which Bitcoin ETF is the most popular?
This week, IBIT closed the trading day with a trading volume of $303.97 million, surpassing Grayscale's GBTC, which generated $292.37 million in trading volumes on the same day.
Fidelity's ETF (FBTC) claimed third place in terms of trading volume, with $171.84 million in transactions. Meanwhile, other exchange-traded funds failed to reach the $100 million mark, indicating lower demand from capital holders.
At the end of the week, GBTC from Grayscale once again led in trading volumes, with transactions totaling $376 million, while BlackRock's IBIT reached $252 million.
IBIT approached the top position a few days earlier, making its ultimate dominance only a matter of time. Bloomberg analyst James Seyffart commented on this week's trading dynamics. Here is his take on the matter.
IBIT from BlackRock became the first Bitcoin ETF to generate higher trading volume than GBTC from Grayscale in a single day. However, the total trading volume for the day reached $924 million, the first day since launch when it did not surpass $1 billion.
According to analytical platforms, the total trading volume of ETF shares since their listing reached $30 billion, an excellent result considering the relatively short time these investment instruments have been available on exchanges.
To recap, the Securities and Exchange Commission approved the launch of spot Bitcoin ETFs on January 10, 2024, and trading began the following day.
IBIT also led in terms of inflows on Thursday, as the fund received an influx of $163.9 million. FBTC took second place with an inflow of $35.8 million, while GBTC experienced an outflow of $182 million.
This marks the lowest outflow for GBTC since January 11, 2024. Net inflows into all ETFs reached $38.5 million, marking the fifth consecutive day of inflows. Experts note that in just 15 days of trading, net inflows totaled $1.4 billion.
