Fidelity’s Bitcoin exchange-traded fund (ETF) has taken a prominent lead in the cryptocurrency investment arena, with a noteworthy $208 million in daily inflows recorded on January 29. This pivotal moment sees Fidelity’s FBTC not only offsetting Grayscale Bitcoin Trust’s outflows but surpassing them, signaling a significant upswing in investor confidence.
Data from Farside Investors reveals that Fidelity’s FBTC witnessed the substantial inflow, contrasting with the $192 million outflow from Grayscale Bitcoin Trust, which experienced its lowest daily outflows since its re-launch, according to BitMEX Research data.
The diminishing outflows from Grayscale’s fund, with a nearly 25% drop from January 26, have captivated crypto traders’ attention. Analysts, including those from JPMorgan, suggest that the slowdown in GBTC outflows could alleviate downward pressure on Bitcoin prices.
This is what the fee table looks like now: pic.twitter.com/LPvd6YwGWJ
— James Seyffart (@JSeyff) January 29, 2024
As the cryptocurrency market witnesses increased competition, the rise of nine new U.S. spot Bitcoin ETFs is evident. Figures from January 29 indicate a combined volume of $994.1 million, nearly doubling that of GBTC, which recorded $570 million in volume. Notably, BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund dominated the volume share in this competitive landscape.
And @Grayscale's $GBTC maintains its liquidity crown — trading $570 million and ~$110 million more than second place $IBIT today https://t.co/WIAWKwDnqY pic.twitter.com/ma0CE5szLa
— James Seyffart (@JSeyff) January 29, 2024
Moreover, the fiercely contested market has prompted some fund issuers to slash fees in a bid to attract investors. Invesco and Galaxy Asset Management recently joined the fee war, reducing the expense ratio of their joint ETF, Invesco Galaxy Bitcoin ETF (BTCO), to 0.25%. This strategic move aligns with a broader trend as fund issuers globally adjust fees to remain competitive and retain investor interest.
