The Exchange Traded Fund (ETF) on Bitcoin managed by BlackRock has recently surpassed the daily volume of the Exchange Traded Product (ETP) GBTC converted, managed by Grayscale.
In particular, IBIT recorded a trading volume of 304 million dollars, surpassing GBTC’s 292 million dollars. Let’s see all the details below.
BlackRock’s Bitcoin ETF attracts a higher daily volume than GBTC
As anticipated, after 14 days of dominance of Grayscale’s converted product on daily volumes of Bitcoin spot exchange-traded funds (ETFs), now BlackRock’s IBIT has surpassed GBTC for the first time.
Yesterday, IBIT recorded a daily trading volume of $303.97 million, surpassing GBTC’s $292.37 million, according to The Block’s data dashboard.
At the third place is positioned FBTC by Fidelity with a volume of 171.84 million dollars. The other new spot bitcoin ETFs have generated volumes below 100 million dollars each.
Both BlackRock and Fidelity‘s spot ETFs on bitcoin had already shown an approach to GBTC’s daily trading volumes earlier this week, raising the possibility of surpassing Grayscale’s converted fund on Tuesday.
James Seyffart, ETF analyst at Bloomberg, stated the following:
“BlackRock’s IBIT is the first ETF to surpass Grayscale’s GBTC in a single day. Today’s total trades were a bit problematic, with $924 million, the first day below a billion dollars in volume for the group since its launch.”
The cumulative trading volume for spot bitcoin ETFs is now approaching $30 billion. Additionally, BlackRock’s IBIT led in terms of inflows on Thursday, with a $163.9 million increase in the fund.
FBTC by Fidelity was the second with inflows amounting to $35.8 million, while GBTC recorded outflows of $182 million, the lowest since January 11th. Net inflows were $38.5 million, marking the fifth consecutive day of inflows.
Total net inflows currently amount to approximately $1.4 billion after 15 days of trading, according to BitMEX Research data.
The decline of GBTC: the new spot Bitcoin ETFs
The previous supremacy of GBTC, a conversion of the Bitcoin Trust rather than a newly born spot ETF on Bitcoin, has seen significant outflows since its launch on January 11th.
Despite higher fees, the GBTC product has suffered a loss of over $5.8 billion in assets during the period, while the nine new ETFs have recorded combined inflows of $7.2 billion, according to BitMEX Research analysis.
However, this domain has recently started to lose ground, with profit-taking on GBTC appearing to have largely concluded, according to JPMorgan analysts, who state that:
“GBTC investors, who over the past year had purchased shares of the fund at a significant discount to net asset value, positioning themselves for a potential ETF conversion, now seem to be “taking maximum profit after the ETF conversion, completely abandoning the bitcoin space instead of switching to cheaper spot bitcoin ETFs.”
At the beginning of this week, The Block reported that the nine spot Bitcoin ETFs have accumulated over 150,000 BTC, while GBTC’s market share for trading volume has decreased by almost half, dropping from a peak of 63.9% on January 17th to 36.4%.
Further declines have occurred in recent days, bringing GBTC’s market share to 31.4%, while IBIT has risen to 32.6% and FBTC to 18.4%, according to Thursday’s data.
Currently, the price of Bitcoin is around $43,060, marking a 2% increase in the last 24 hours and a 4.4% increase in the last week.
However, the main cryptocurrency is still down about 12% since bitcoin spot ETFs entered the market.
