In a Third Day of Trading, Top Bitcoin ETFs Dominate the Market
In just three days of trading, the top three spot bitcoin ETFs have established themselves as the leaders in the market, capturing nearly 90% of the total trading volume. Grayscale, BlackRock, and Fidelity are currently the frontrunners among the 11 spot bitcoin ETFs available for trading. These instruments began trading last week after receiving approval.
According to data from Yahoo Finance compiled by The Block, the top three funds have generated approximately $1.2 billion of the total $1.4 billion trading volume with two hours left in the day. Although today’s volume is expected to be lower than Friday’s $3.1 billion, spikes in volume near the end of trading could change that trajectory. On Thursday’s first day of trading, total volume reached $4.6 billion.
BlackRock Poised to Become “Liquidity King”
While Grayscale has dominated in terms of volume among the new crypto-based instruments, its ETF has experienced significant outflows since it started trading last week. According to Bloomberg Intelligence senior ETF analyst Eric Balchunas, Grayscale’s spot bitcoin ETF has lost over $500 million in value. In comparison, BlackRock and Fidelity’s funds have seen inflows totaling over $400 million since they began trading.
Balchunas believes that BlackRock’s ETF has the potential to overtake Grayscale as the “Liquidity King.” Overall, he views the trading activity for these new funds as healthy, with cumulative volume surpassing $9 billion within the first three days.
Hot Take: Dominance of Top Bitcoin ETFs Raises Questions About Market Competition
The overwhelming dominance of Grayscale, BlackRock, and Fidelity in the spot bitcoin ETF market raises questions about competition and market share. While these three funds have captured the majority of trading volume, other ETF providers may struggle to gain traction and attract investors. The outflows experienced by Grayscale’s ETF highlight the volatility and unpredictability of the market, as well as the potential for shifting investor preferences. As the market continues to evolve, it will be interesting to see if any new players emerge and challenge the current leaders.
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