BlackRock's Bitcoin exchange-traded fund (IBIT) has surpassed the volume of Grayscale's converted BTC product (GBTC) for the first time since trading began on January 11.
BlackRock's IBIT is the first Bitcoin spot exchange-traded fund (ETF) to overtake Grayscale's converted BTC product (GBTC) in terms of daily volume.
Trading volume as of February 1st
According to data from The Block, BlackRock's IBIT recorded a trading volume of $303.97 million yesterday, while Grayscale's GBTC recorded just $292.37 million.
Other notable funds on the list include Fidelity's FBTC, which came in third with $171.84 million. The remaining Bitcoin funds, including ARK 21Shares, recorded trading volumes of less than $100 million.
Notably, yesterday’s trading volume was estimated at around $924 million. James Seyffart, ETF analyst at Bloomberg, commented on the development, pointing out that yesterday was the first day that total ETF volume was below $1 billion.
There's still some left after the close, but it looks like BlackRock's $IBIT has become the first ETF to have traded more than Grayscale's $GBTC in a single day.
Today's total trading, however, was a bit of a doozy at $924 million – the first day below $1 billion in dollar volume for the group since its inception. https://t.co/IeIF2COm4F pic.twitter.com/ZtADLBQP63
— James Seyffart (@JSeyff) February 1, 2024
Additionally, yesterday one of the newly approved Bitcoin funds surpassed Grayscale in volume for the first time since trading began on January 11th.
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Grayscale’s dominance in the Bitcoin ETF market is declining
It is worth noting that Grayscale's GBTC has led other Bitcoin funds in both assets under management (AUM) and daily volume since its listing.
GBTC's massive volume largely resulted from outflows as Grayscale investors redirected their profits to other providers. The outflow is reflected in the huge amounts of BTC transferred from Grayscale to the San Francisco-based exchange Coinbase.
Since January 11, Grayscale has transferred hundreds of millions of dollars worth of BTC to the exchange. However, the outflow from GBTC has decreased significantly in the last few days. Yesterday, GBTC recorded an outflow of $182 million, which was the lowest since January 11th.
What's notable is that Grayscale's converted fund is still considered the largest Bitcoin ETF, boasting a whopping $20.55 billion.
BlackRock and Fidelity lead ETF inlows
Interestingly, on February 1, BlackRock and Fidelity funds led the inflows. While BlackRock's IBIT saw an inflow of $163.9 million, Fidelity's FBTC added $35.8 million to its fund.
After 15 trading days, total net inflows stood at around $1.4 billion. BlackRock’s Bitcoin fund manages $3.01 billion in assets, trailing GBTC, according to data from BitMEX Research. Additionally, Fidelity's ETF has a massive AUM of $2.58 billion.
Bitcoin ETF Flow – Day 15
All data out. Net inflow of +$38.5 million for day 15. Seems to be a relatively quiet day pic.twitter.com/L478MuK9v1
— BitMEX Research (@BitMEXResearch) February 2, 2024
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