BlackRock bitcoin ETF edges GBTC in daily trade volumes for first time

As BlackRock’s fund approaches $3 billion of net inflows, Grayscale’s product has bled more than $5.6 billion in assets since converting to an ETF

by Ben Strack /

February 1, 2024 04:54 pm

Artwork by Crystal Le

Trading volumes for BlackRock’s spot bitcoin ETF eclipsed those of Grayscale Investments’ competing product at market close Thursday, marking a first since such funds began trading on Jan. 11.

The Grayscale Bitcoin Trust ETF (GBTC) has dominated trading volumes in the first three weeks of US spot bitcoin funds trading.

GBTC had accounted for nearly half of volumes — roughly $14.4 billion of $29.3 billion — in the first 15 trading days for the 10 ETFs in the segment, according to Bloomberg Intelligence data.

But while GBTC notched trading volumes of about $292 million on Thursday, BlackRock’s iShares Bitcoin Trust (IBIT) saw volumes of $302 million, Yahoo Finance data shows.

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GBTC’s high trade volumes have not equated to inflows. The product has endured net outflows of $5.6 billion, as of Wednesday, since converting to an ETF.

Industry watchers have said a portion of Grayscale investors were eager to exit GBTC after years of not being able to sell shares of the trust at their net asset value. GBTC also carries a 1.5% fee — significantly higher than rival funds with expense ratios ranging from 0.19% and 0.39%.

John Hoffman, Grayscale’s managing director of sales and distribution, previously told Blockworks that because large capital markets ETFs are used in a variety of investing strategies, “we anticipate GBTC’s diverse shareholder base will continue to deploy strategies that impact inflows and outflows.”

While Grayscale’s outflows have persisted in recent days, IBIT and the Fidelity Wise Origin Bitcoin Fund (FBTC) have seen about $2.8 billion and $2.5 billion of net inflows, respectively, since coming to market.

Net inflows into the 10 spot bitcoin ETFs — despite the heavy GBTC outflows — rose back above $1 billion on Monday and were at nearly $1.5 billion after Wednesday.

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