Key Points
- Grayscale's market share in spot bitcoin ETF trading volume has decreased, with BlackRock and Fidelity gaining dominance.
- BlackRock and Fidelity's ETFs now hold almost 80% of the total assets under management for all spot bitcoin ETFs, excluding Grayscale.
Grayscale's dominance in the spot bitcoin ETF trading volume has been challenged as BlackRock and Fidelity's ETFs continue to grow in market share.
Grayscale's ETF, which had been leading in daily trading volume since its inception in January, now captures less than 20% of the total trading volume.
Rising Competitors
On the other hand, BlackRock and Fidelity's ETFs combined accounted for 69% of the total trading volume last Friday.
When spot Bitcoin ETFs began trading earlier this year, Grayscale's product consistently absorbed about half of all trading activity.
However, BlackRock's spot bitcoin ETF alone accounted for nearly 47% of all trading volume last Friday.
Together, BlackRock and Fidelity's products held almost 80% of the total assets under management for all spot bitcoin ETFs, excluding Grayscale.
Grayscale's Market Position
Despite the decrease in market share, Grayscale's total assets under management (AUM) have rebounded, likely due to the increasing price of bitcoin.
Meanwhile, BlackRock and Fidelity's ETFs have been steadily growing in size due to robust levels of capital inflows.
According to BitMEX Research, "The assets of the ETFs excluding [Grayscale] are now over $28 billion. This is now larger than GBTC's assets for the first time."
Grayscale's spot bitcoin ETF charges a higher management fee of 1.5% compared to BlackRock's 0.12% on assets under $5 billion and 0.25% afterward.
Fidelity is not charging any fees until August.
Grayscale has not yet responded to requests for comment.
