It’s been a captivating week in the crypto market, with BlackRock and Fidelity’s spot bitcoin ETFs making a notable impression. For a moment on Tuesday, it seemed like these new entrants might even surpass Grayscale’s fund in daily volume, a first since their debut over two weeks ago.
Grayscale’s fund, transitioning from an existing product, has seen a significant reduction in its assets under management, from over $25 billion initially. In the daily trading volume race, BlackRock and Fidelity have been consistently ranking second and third, trailing Grayscale. However, at market close on Tuesday, the competition was fierce: BlackRock at $383 million and Fidelity at $288 million in trading volume, with Grayscale maintaining a narrow lead at $396 million.
Since their launch this month, these three ETFs have dominated the market, at times accounting for about 90% of all trading activity. In comparison, other spot bitcoin ETFs like Invesco and Galaxy, Franklin Templeton, and Ark Invest are trailing significantly.
Grayscale’s ETF has reportedly lost over $5 billion in assets, while BlackRock and Fidelity have seen a net increase of over $2 billion. Amid this intense competition, Invesco and Galaxy Asset Management have decided to reduce their fund’s fee to 0.25%, aligning with most competitors.
Total trading volume for all active spot bitcoin ETFs is nearing a staggering $27 billion. This influx of investment into the new ETFs is viewed positively by many in the crypto world, signaling a growing acceptance of digital assets.