BlackRock and Fidelity's spot bitcoin ETFs nab 69% of market share, eroding Grayscale's dominance
Quick Take
- Grayscale’s market share dominance of cumulative trading volume for spot bitcoin ETFs could be slipping as BlackRock and Fidelity’s less-expensive products increase their assets under management.
Grayscale's market share of cumulative spot bitcoin ETF trading volume dropped to its lowest point last Friday as rival products offered by BlackRock and Fidelity added to their assets under management.
With about $30 billion already under management when its spot bitcoin ETF started trading in January, Grayscale's fund had dominated total daily trading volume. That dominance, however, showed signs of weakening when Grayscale's ETF closed out Friday, capturing less than 20% of the total trading volume for the first time since the new products launched.
Meanwhile, BlackRock and Fidelity's ETFs combined for 69% of the total trading volume seen on Friday, according to The Block's Data Dashboard. When spot bitcoin ETFs started trading in January, Grayscale's product — a conversion of its flagship GBTC fund — consistently absorbed roughly half of all trading activity, the dashboard also said.
BlackRock's spot bitcoin ETF made up nearly 47% of all trading volume on Friday. Simultaneously, BlackRock and Fidelity's products combined held almost 80% of the cumulative assets under management for all spot bitcoin ETFs, excluding Grayscale, also according to The Block Data Dashboard.
Grayscale's AUM rebounds, but market share slips
Early on, much of Grayscale's trading came from outflows, with the fund shedding several billion dollars at one point. The firm's fund has since rebounded in terms of total assets under management, likely due in part to bitcoin's rising price, while BlackRock and Fidelity's products have been consistently swelling in size as they register robust levels of capital inflows.
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"The assets of the ETFs excluding [Grayscale] are now over $28 billion," BitMEX Research posted to X over the weekend. "This is now larger than GBTC's assets for the first time."
Grayscale did not immediately respond to a request for comment.
Grayscale's spot bitcoin ETF charges a higher management or sponsor fee than BlackRock and Fidelity. The firm's fee is 1.5%, while BlackRock's is 0.12% on assets under $5 billion and 0.25% afterward. Fidelity will not charge any fees until August.
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