grayscale
  • Despite a dip in total volume, Grayscale, BlackRock, & Fidelity dominate with 90% of trading, totaling $1.6 billion/day.
  • BlackRock is emerging as the potential “Liquidity King” in the space.
  • Overall trading activity remains strong, exceeding $9.5 billion in the first 3 days.

Last week marked a significant achievement for Grayscale, BlackRock, and Fidelity as they secured approval for trading in the spot bitcoin ETF market. These financial powerhouses are not just participating; they are leading the pack, heading the 11 available bitcoin ETFs for trading.

What does the future hold for this power trio? Read on!

Dominating the Market

As the curtains closed on Tuesday’s trading session, Grayscale, BlackRock, and Fidelity emerged as undeniable leaders, collectively accounting for a remarkable 90% of the total trading volume. Together, they contributed an impressive $1.6 billion to the overall trading volume of $1.8 billion.

These three have collectively contributed $1.6 billion out of the total $1.8 billion in trading volume. Despite the overall volume dipping from Friday’s peak of $3 billion, these market giants maintained an impressive stronghold. 

Despite a slight dip in the overall trading volume from the Friday peak of $3 billion, these market giants stood firm. Their combined contribution of $1.6 billion, even amidst a decrease in total volume, highlights the resilience of Grayscale, BlackRock, and Fidelity in the evolving spot bitcoin ETF market.

Trading Trends Insights

Coinpedia’s report showcased a strong start, with the first-day trading volume reaching an impressive $4.6 billion. This early momentum laid the foundation for the subsequent dominance of these three!

Also Read: Short-Lived Rally? Bitcoin Slumps After ETF Debut as Investors Cash Out

The Rise of the ‘Liquidity King’

While Grayscale initially dominated the volume charts, BlackRock is emerging as a potential ‘Liquidity Leader,’ gaining significant momentum. Notably, Grayscale’s spot bitcoin ETF, a conversion of its flagship GBTC fund, witnessed outflows, shedding over $500 million since its debut. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, identifies BlackRock’s ETF as the likely leader in the liquidity race.

LATEST: Day Three volume so far half a billion for the Newborn Nine which is healthy, about the same pattern dropoff rate as $BITO (which again was the most successful organic launch in ETF history). $IBIT keeping lead to be one most likely to overtake $GBTC as Liquidity King. pic.twitter.com/hoatfSmNpN

— Eric Balchunas (@EricBalchunas) January 16, 2024

Both BlackRock and Fidelity have experienced substantial inflows, exceeding $400 million since the start of trading. Despite Grayscale’s outflows, the overall trading activity for these new funds, as analyzed by Balchunas, remains robust. The cumulative volume over the first three days has surpassed $9.5 billion, mirroring the successful launch pattern observed in $BITO, the most successful organic ETF launch in history.

Read More: The Bitcoin Spot ETF Effect: Predictions and Possibilities by Arthur Hayes

As the spot bitcoin ETF market matures, the dominance of Grayscale, BlackRock, and Fidelity signals a positive shift in the market.

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.