Grayscale Investments’ Bitcoin Trust ETF (GBTC) has been outperformed by BlackRock’s iShares Bitcoin Trust (IBIT) in terms of trade volume.
The trading volume of IBIT surpassed GBTC’s $292 million on February 1, showing a significant shift in the rapidly growing Bitcoin ETF market.
BlackRock’s IBIT Rises Amidst Bitcoin ETF Shift: Grayscale Faces Setback
The trading volume switch is notable because Grayscale’s GBTC dominated three weeks after spot Bitcoin ETFs were introduced in the US on January 11. With $14.4 billion out of the total $29.3 billion that was traded, GBTC was responsible for almost half of all trading activity among the ten offered ETFs.
Lot of talk about the inflows to the US spot #Bitcoin ETFs. Including from me but taking a step back and looking at other TradFi overlaps with Bitcoin we see the opposite story. Which i wrote about yesterday. ~$537 million in outflows from international crypto funds. pic.twitter.com/iNxBtohymA
— James Seyffart (@JSeyff) February 2, 2024
The most recent data shows a clear trend in how investors act, with BlackRock’s IBIT getting more attention and trading action. This increase in trade volume for IBIT comes on the fifth consecutive day in a row of net inflows for Bitcoin ETFs; on February 1, these funds received a total of $38.4 million..
Despite Grayscale’s problems, there has been a lot of investment activity in the Bitcoin ETF field. Significant net inflows have been directed to BlackRock’s IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC), which have emerged as star performers. IBIT has received about $2.8 billion in net inflows since it came out on the market, while FBTC has received $2.5 billion.
Investors are rethinking their choices and turning to alternatives like BlackRock’s IBIT and Fidelity’s FBTC.
