BlackRock And Fidelity Bitcoin Holdings Hit $6.5 Billion

Key Points:

• BlackRock and Fidelity own a combined 144,640 BTC ($6.5 billion) in their Bitcoin ETFs.
• Grayscale may lose ground to these new ETFs if it doesn’t reduce its higher fees.
• Fidelity contributed significantly to the recent addition of 5,019 BTC across eight ETFs.

BlackRock and Fidelity Bitcoin holdings hit 144,640 BTC ($6.5B). They outperform Grayscale, which has higher fees and saw its smallest outflow.

BlackRock and Fidelity currently own a combined 144,640 BTC worth an astonishing $6.5 billion for their Bitcoin Exchange-Traded Funds (ETFs).

Why are BlackRock and Fidelity Bitcoin Holdings Outperforming Grayscale?

A recent report released by JPMorgan highlighted that BlackRock and Fidelity’s spot Bitcoin ETFs already have an edge over Grayscale in terms of certain liquidity metrics associated with market breadth.

However, the report suggests that Grayscale’s fund may lose ground to the newly created ETFs, especially those of BlackRock and Fidelity, if it fails to make a meaningful reduction in its fees.

Interestingly, Grayscale charges the highest fees among spot Bitcoin ETF issuers. Even after reducing its 2% management fee to 1.5% to convert to a spot Bitcoin ETF, it remains more expensive than its competitors.

Readmore: BlackRock Spot Bitcoin ETF Is Now In The Top 10% Of All ETFs By Assets

Record-Breaking Performance of Fidelity’s BTC ETF

Recent statistics from Lookonchain show that Grayscale observed the smallest outflow in its history, decreasing 1,708 BTC ($76.9 million). In contrast, eight ETFs added 5,019 BTC ($226 million), with Fidelity adding a significant portion of 2,951 BTC ($132.9 million).

As reported by CoinCu on February 2, the the BlackRock spot soared to $3 billion in assets, placing it among the top 10% of all ETFs in terms of assets.