For the first time, BlackRock’s IBIT and ProShares’ BITO, two bitcoin exchange-traded funds (ETFs), have outperformed Grayscale’s GBTC in daily trading volume. On Thursday, IBIT saw trading volume reach $306 million, and BITO’s volume was close behind at $298 million, surpassing GBTC’s $291 million. This milestone marks a significant shift in the cryptocurrency investment landscape, as Grayscale has been the leading name in bitcoin ETF trading volumes since their inception in early January.
Interestingly, the trading volume for bitcoin ETFs dipped below $1 billion on the same day, a first according to Bloomberg Intelligence analyst James Seyffart, who shared the insight on X. It’s important to note that these figures don’t account for after-hours trading.
Grayscale’s dominance in the market has been evident, leading the way in trading volumes among bitcoin ETFs. However, recent weeks have seen a change in investor behavior. Many GBTC investors have been taking profits and moving their investments to other ETF providers. This shift has been partly fueled by the selling pressure seen in the market. Notably, the now-bankrupt crypto exchange FTX has offloaded over $1 billion worth of GBTC, as previously reported.
Despite these dynamics, the overall market for bitcoin ETFs remains robust, with all ETFs collectively holding $28.6 billion worth of bitcoin as of Thursday. This transition points to a growing diversity in the choices available to investors and a competitive landscape among ETF providers.
