The ETF landscape has witnessed a remarkable shift as BlackRock’s IBIT has overtaken Grayscale’s GBTC in trading volume for the first time ever. IBIT, which was launched on Jan 11, 2024, along with five other Bitcoin ETFs, has shown remarkable performance and liquidity in the past few days.
According to Bloomberg ETF analyst James Seyffart, IBIT is the first ETF to trade more than GBTC in a single day. He shared a post on Feb 2, 2024, showing that IBIT had a trading volume of $219.3 million, while GBTC had $181.7 million. He also noted that GBTC usually has a huge closing volume in the last hours of the day.
Despite the rise of IBIT, Grayscale, the undisputed leader in the Bitcoin ETF space, remains undeterred. In a Bloomberg report, John Hoffman, Grayscale’s Managing Director of Sales and Distribution, said that GBTC has been “dominating trading volume and has already solidified its role as a true capital markets tool for risk transfer in Bitcoin.” He also said that GBTC’s diverse shareholder base will continue to deploy strategies that impact inflows and outflows.
Bitcoin ETF Landscape: Competition Emerges
However, Seyffart had previously suggested that IBIT is “catching up” with GBTC in a post on X. He attributed IBIT’s success to its lower fees, higher transparency, and better tracking of Bitcoin’s price.
Among the other Bitcoin ETFs, Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) is the closest competitor to IBIT and GBTC, with a trading volume of $129.3 million. The other three ETFs, ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), and Invesco Galaxy Bitcoin ETF (BTCO), are lagging behind with trading volumes below $50 million.
The Bitcoin ETFs market is still evolving and dynamic, as investors seek the best way to gain exposure to the leading cryptocurrency. IBIT’s breakthrough may signal a new era of competition and innovation in the ETF ecosystem.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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