Despite reaching an all-time high of over $200 billion in spot Bitcoin ETF trading volumes on April 8, Grayscale’s Bitcoin ETF (GBTC) experienced significant outflows, contributing to a shift in market share among U.S. spot BTC investment products.
Grayscale’s BTC ETF saw a reduction of $154.9 million, adding to the overall $19.4 million in outflows from all 10 U.S. spot BTC investment products, as reported by SoSoValue. Meanwhile, BlackRock’s IBIT fund emerged as the top recipient of investor demand, with inflows totaling $128.6 million. Bitwise followed with $3.7 million in inflows, while Fidelity secured the third position with $3 million.
Interestingly, six spot BTC ETF issuers did not record daily net inflows, reflecting volatile interest ahead of Bitcoin’s upcoming halving event. Despite this, cumulative trading volumes have doubled since the previous month, surging from $100 billion to over $200 billion, following the approval of listings by the U.S. SEC in January.
Grayscale CEO Michael Sonneshein commented on the situation, suggesting that the outflows from the crypto asset manager have likely stabilized, partly due to resolved proceedings in bankruptcy cases like FTX’s Sam Bankman-Fried. FTX’s estate had previously liquidated over $2 billion in GBTC shares. Sonneshein also anticipates a reduction in Grayscale’s fees, which could incentivize demand for its Bitcoin ETF as a prominent issuer and market leader.
However, despite Grayscale’s dominance in the Bitcoin ETF market at the beginning of the year, the company has lost ground to new competitors, notably BlackRock. BlackRock has surged ahead to claim around 52% of the market share, up from 22%, while Grayscale’s share has dropped below 25%. Fidelity holds the third-largest share at 16.9%.
As the market dynamics continue to evolve, it remains to be seen how Grayscale and other key players will adapt to maintain their positions in the increasingly competitive Bitcoin ETF landscape.
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