On Friday, Grayscale’s market share of the total spot bitcoin ETF trading volume dropped to an all-time low as rival products from Fidelity and BlackRock increased their assets under management.
Grayscale’s spot bitcoin exchange-traded fund (ETF) had a daily trading volume of over $30 billion when it started trading in January.
However, that dominance seemed to be eroding when Grayscale’s ETF concluded trading on Friday, accounting for less than 20% of the total volume traded for the first time since the new products were released.
Conversely, according to The Block’s Data Dashboard, 69% of Friday’s trading activity was made up of ETFs from Fidelity and BlackRock. According to the dashboard, when spot bitcoin ETFs first launched in January, Grayscale’s GBTC fund—which was later turned into an offering—was able to get half of the trading volume.
BlackRock’s spot bitcoin exchange-traded fund (ETF) accounted for nearly 47% of Friday’s trading activity. Moreover, according to the Block Data Dashboard, BlackRock and Fidelity’s products held close to 80% of the total cumulative assets under management for all spot bitcoin ETFs, with the exception of Grayscale.
Grayscale’s fund saw withdrawals at first, losing billions. But it recovered with more total assets, maybe because the price of Bitcoin was growing. On the other hand, significant capital inflows have resulted in increased product sizes for Fidelity and BlackRock.
“The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC’s assets for the first time,” wrote BitMEX Research on X over the weekend.
Grayscale’s spot bitcoin ETF has a higher management or sponsor fee than those offered by Fidelity and BlackRock. For assets under $5 billion, BlackRock charges 0.12%, and for assets over that amount, 0.25%. The company levies a 1.5% fee. Fidelity won’t charge you anything until August.
