Bitcoin

BlackRock Spot Bitcoin ETF Is The First ETF To Surpass GBTC

Key Points:

BlackRock spot Bitcoin ETF surpasses Grayscale’s GBTC in Bitcoin ETF trading volume amid substantial outflows.
Valkyrie adopts a pioneering strategy, leveraging BitGo and its Bitcoin Fund to diversify risk and enhance safety in the competitive spot Bitcoin ETF market.

BlackRock has emerged as the first fund to surpass Grayscale’s GBTC in trading volume, marking a significant shift in the landscape of cryptocurrency exchange-traded funds (ETFs).

BlackRock Spot Bitcoin ETF Is The First ETF To Surpass GBTC 2

BlackRock Spot Bitcoin ETF Takes Lead in Bitcoin ETF Trading Volume Over Grayscale’s GBTC

Over the past two weeks, BlackRock has experienced substantial outflows, contributing to its unprecedented success in out-trading Grayscale.

Bloomberg ETF analyst James Seyffart emphasized that the BlackRock spot Bitcoin ETF, IBIT, has secured its position with a daily trading volume exceeding that of Grayscale’s GBTC. Although the total trading volume on February 1 reached $924 million, the current daily trading volume remains below the $1 billion mark.

Meanwhile, Grayscale, initially boasting over $25 billion in assets under management, has witnessed substantial outflows, turning it into a conversion rather than a flourishing product. The total trading volume, encompassing buying and selling activities, now sees BlackRock spot Bitcoin ETF and Fidelity spot Bitcoin ETF gradually gaining dominance in the market.

What Do ETF Issuers Do to Compete?

The competition among ETF issuers intensified following the Securities and Exchange Commission’s approval of spot Bitcoin ETFs on January 10. Notably, fees became a focal point in discussions, with some issuers offering fee waivers for up to six months to attract market participants and investors.

Adding a unique dimension to the evolving landscape, Valkyrie has positioned itself as a pioneer by leveraging two separate crypto custodians for its spot Bitcoin ETF. In a strategic move facilitated through its partnership with BitGo, Valkyrie’s Bitcoin Fund (BRRR) now benefits from customer services and the safekeeping of a portion of its underlying Bitcoin in the BitGo exchange-traded product.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.