Grayscale’s GBTC Leads by Wide Margin as Investors Reassess ETF Data

The outlook of the spot Bitcoin ETF market has been diverse with one asset management firm leading now and another taking over in a few hours. 

Grayscale’s GBTC Trading Volume Hits $338M

Bloomberg Intelligence data for spot Bitcoin ETF trading day 16 shows that Grayscale’s GBTC is leading the market with $338 million in trading volume. BlackRock’s IBIT is following closely at second position with $233.4 million and Fidelity’s FBTC is next with $176.4 million. By these statistics, it is obvious that Grayscale is winning a resounding victory over its closest competitors by more than $100 million.

The volume race isn't even close today. $GBTC trouncing peers by over $100 mln. Another day with aggregate dollar volumes below $1 billion though pic.twitter.com/xPCvIZPM3a

— James Seyffart (@JSeyff) February 2, 2024

Noteworthy, this new data arises in less than 24 hours after it was reported that BlackRock outperformed Grayscale. As of February 1, IBIT’s trading volume was around $303.4 million while that of Grayscale’s GBTC was $291.7 million. During this time, the total trading volume recorded was around $929.2 million. Currently, the spot Bitcoin ETF market has a total trading volume of $922.3 million, per the Bloomberg data.

While Grayscale’s volume has been outstanding, it is worth bearing in mind that many of its transactions since inception are outflows. On January 22, more than $640.50 million was recorded as net outflows from Grayscale’s Bitcoin ETF. This was after it had recorded a major net outflow of $580 million on the fifth trading day. 

The Jan. 22 net withdrawals pushed the total outflows from GBTC to $3.4 billion. 

Grayscale Spot Bitcoin ETF Outflow is Slowing Down

It is believed that the outflows from GBTC are gradually slowing down. This sentiment was declared after the Michael Sonneshein-led firm saw a total outflow of only $429.3 million on trading day 9. 

Compared to the other days, this was a celebration-worthy drop in the amount of net outflows from Grayscale’s GBTC. 

The newly recorded spot Bitcoin ETF data may be an indication that the net outflows from GBTC are really reducing and the sell-off might be over. Other Bitcoin ETFs are also performing better than they did 24 hours ago. However, Franklin Templeton’s EZBC has dethroned Valkyrie’s BRRR as the least-performing spot Bitcoin ETF in the United States. 

With the majority of the spot Bitcoin ETFs in the market showing more inflows than outflow, the general assessment is that the market has a good traction.