BlackRock Bitcoin ETF Overtakes Grayscale’s GBTC in Trading Volume

BlackRock’s Bitcoin exchange-traded fund (IBIT) has surpassed Grayscale’s converted BTC product (GBTC) in volume for the first time since trading commenced on January 11.  

BlackRock’s IBIT has become the first Bitcoin spot exchange-traded fund (ETF) to overtake Grayscale’s converted BTC product (GBTC) in terms of daily volume. 

February 1 Trading Volume 

According to data from The Block, BlackRock’s IBIT recorded $303.97 million in trading volume yesterday, while Grayscale’s GBTC saw only $292.37 million. 

Other notable funds in the list include Fidelity’s FBTC, which came third with $171.84 million worth of volume. The remaining Bitcoin funds, including ARK 21Shares, saw less than $100 million in trading volume. 

Notably, yesterday’s trading volume was valued at around $924 million. Commenting on the development, Bloomberg ETF analyst James Seyffart noted that yesterday was the first day the total ETF volume was below $1 billion. 

Still some after hours trading left but looks like BlackRock’s $IBIT is the first ETF to trade more than Grayscale’s $GBTC in a single day.

Total trading today was kind of a dud though at $924 million — first day below $1 billion in dollar volume for the group since launch. https://t.co/IeIF2COm4F pic.twitter.com/ZtADLBQP63

— James Seyffart (@JSeyff) February 1, 2024

In addition, yesterday was also the first time that one of the newly approved Bitcoin funds surpassed Grayscale’s volume since January 11, when trading commenced. 

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Grayscale’s Dominance in Bitcoin ETF Market Declines 

It bears mentioning that Grayscale’s GBTC has led other Bitcoin funds in both assets under management (AUM) and daily volume since their listing. 

GBTC’s enormous volume mostly came from the outflows as Grayscale’s investors were seen diverting their profits to other providers. The outflow is reflected in the huge amounts of BTC moved from Grayscale to San Francisco-based exchange Coinbase. 

Since January 11, Grayscale has moved hundreds of millions of dollars worth of BTC to the exchange. However, the outflow from GBTC has reduced significantly in the past few days. Yesterday, GBTC saw an outflow of $182 million, marking the lowest since January 11. 

Notably, Grayscale’s converted fund is still ranked as the largest Bitcoin ETF, boasting an astounding $20.55 billion. 

BlackRock and Fidelity Lead ETF Inlows 

Interestingly, BlackRock and Fidelity funds led in inflow on February 1. While  BlackRock’s IBIT registered a $163.9 million inflow, Fidelity’s FBTC added $35.8 million to its fund. 

After 15 days of trading, the total net inflows was around $1.4 billion. According to BitMEX Research data, BlackRock’s Bitcoin fund has $3.01 billion in assets under management, ranking behind GBTC. Furthermore, Fidelity’s ETF boasts a massive $2.58 billion in AUM.  

Bitcoin ETF Flow – Day 15

All data out. Net flow of +$38.5m for day 15. Relatively quiet day it seems pic.twitter.com/L478MuK9v1

— BitMEX Research (@BitMEXResearch) February 2, 2024