- Bitcoin ETFs accumulate BTC worth billions as they continue to celebrate major inflows.
- Grayscale’s Bitcoin ETF is yet to improve from its floppy start.
- BlackRock and Fidelity have led the pack of the best-performing Bitcoin ETFs.
The launch of Bitcoin ETFs got off to a historic start, raking in billions in inflows within the first weeks of trade. While the majority have continued this momentum, Grayscale’s converted Bitcoin ETF has struggled to match its peers, witnessing investor exits despite its initial leverage and once-favorable market position.
While market movements have hinted at signs of an imminent rebound, Grayscale’s market share continues to trend downward as other Bitcoin ETFs threaten its dominance.
Bitcoin ETFs BTC Surge, Grayscale’s Market Share Dips
On January 30, the number of Bitcoins held by the newly launched exchange-traded funds hit 150,846, worth approximately $6.6 billion.
The Bitcoins are distributed among nine ETF issuers, including BlackRock, Fidelity, Invesco, WisdomTree, Ark 21Shares, VanEck, Franklin Templeton, and Valkyrie.
The impressive performance of the issuers contrasts Grayscale’s, which has recorded an outflow of over 126,482 BTC since launch. The trend has brought the value of Grayscale’s sell-off to approximately $5.5 billion, dipping the investment firm’s market share to 36% from the previous 49%.
Despite Grayscale’s challenges, other Bitcoin ETFs have consistently attracted major inflows.
Best-Performing Bitcoin ETFs
The nine Bitcoin ETFs launched have maintained a progressive momentum , surpassing $25 billion in cumulative volume.
BlackRock’s IBIT had the most impressive start to Bitcoin ETFs launch, attracting billions in inflows and marking remarkable milestones. IBIT’s assets under management have hit a total of 56,621 BTC, worth approximately $2.5 billion at the current rate.
This surpasses the total value held in the Canadian Bitcoin-related ETFs, marking IBIT’s position as one of the best-performing.
The outstanding performance of Fidelity’s FBTC, which currently holds 51,064 BTC worth $2.2 billion at press time, is also noteworthy.
IBIT and FBTC’s daily inflows have surpassed GBTC’s outflows since January 29, culminating in nearly $407 million against GBTC’s $129 million.
On the Flipside
- Despite Grayscale’s wavering dominance, the firm still manages the most Bitcoin assets at over 500,000 BTC.
- The Bitcoin held by the issuers is a fraction of the total supply and is likely to increase, considering the momentum of ETFs so far.
- Grayscale’s investor exodus is likely driven by its high fee rate , which is set at 1.5%
Why This Matters
The impressive performance of the nine Bitcoin ETFs aligns with market expectations for the investment vehicle to usher in significant inflows for the industry. However, Grayscale’s relentless underperformance underscores a shift in investor preference and the possibility of its displacement by other strong contenders.
