The competition between cryptocurrency-based investment vehicles intensifies as BlackRock’s Bitcoin exchange-traded fund (ETF) inches closer to overtaking Grayscale’s dominant position in the market. After three months since the launch of spot bitcoin ETFs, BlackRock’s IBIT fund is steadily closing the gap in assets under management (AUM) against Grayscale’s flagship fund, GBTC.
Newly gathered data from Trackinsight and The Block Data Dashboard reveals that as of Tuesday, BlackRock’s IBIT fund manages $18.2 billion in assets under management (AUM), while Grayscale’s GBTC boasts $23.2 billion. This signals a noteworthy change in the field, as BlackRock’s ETF gains momentum and gradually closes the AUM disparity with Grayscale.
Grayscale’s GBTC, which initially boasted nearly $30 billion in AUM upon launch, has experienced a gradual decline in AUM over recent months. Factors contributing to this decline include Genesis selling GBTC shares and increased competition from other ETFs entering the market. Despite Grayscale’s higher fee structure compared to BlackRock, the latter’s ETF has been attracting more inflows, further propelling its growth trajectory.
In addition to AUM, trading volume market share has also witnessed a shift, with Grayscale’s fund declining from approximately 50% at the launch of spot bitcoin ETFs to 23.5% as of Tuesday. Meanwhile, Fidelity’s spot bitcoin ETF emerges as the third-largest player in terms of both trading volume market share and AUM.
The evolving landscape of cryptocurrency investment vehicles underscores the growing mainstream adoption and investor interest in digital assets. As competition heats up, investors are presented with a diverse range of options to participate in the burgeoning crypto market.