BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), has achieved a significant milestone by surpassing Grayscale’s GBTC in daily trading volume for the first time since the spot Bitcoin ETF approvals in January 2024. The development marks a potential turning point in the ongoing battle for dominance among newly launched spot Bitcoin funds.
On February 2, 2024, data from major exchanges shows IBIT recorded higher daily volume than GBTC, which had long been the undisputed king of Bitcoin investment products. Grayscale’s GBTC, converted from a trust to a spot ETF on January 11, has been experiencing persistent outflows as investors move capital to lower-fee alternatives.
TL;DR
- BlackRock’s IBIT surpasses GBTC in daily trading volume for the first time
- IBIT now holds approximately $3 billion in Bitcoin assets under management
- Spot Bitcoin ETFs collectively amassed $28 billion, representing roughly 3.3% of Bitcoin’s current supply
- Net inflows of $38.4 million recorded across spot Bitcoin ETFs on the day
- Bitcoin holds steady at $43,186, up 3% for the week
BlackRock’s Rapid ETF Ascent
BlackRock’s IBIT has been on a tear since its launch less than a month ago. The fund’s assets under management have swelled to approximately $3 billion in Bitcoin holdings, making it one of the fastest-growing ETF launches in history. The asset management giant’s brand recognition and distribution network have given IBIT a substantial edge in attracting both retail and institutional capital.
The daily volume crossover is particularly notable because GBTC had dominated Bitcoin ETF trading since the spot products launched. Grayscale’s product still holds significantly more assets overall, but the momentum shift signals growing investor preference for lower-fee alternatives. IBIT charges 0.12% in the first year, compared to GBTC’s 1.5% management fee.
Grayscale Outflows Continue
Grayscale’s GBTC has seen approximately $537 million in outflows from international crypto funds during the same period, according to Bloomberg ETF analyst James Seyffart. The persistent outflows reflect the structural disadvantage GBTC faces with its higher fee structure, though the fund remains the largest Bitcoin ETF by total assets.
The outflows from GBTC have been partially offset by inflows into other spot Bitcoin ETFs, resulting in a net positive flow of $38.4 million across all spot Bitcoin products on February 1. This suggests that despite GBTC bleeding, the overall market for regulated Bitcoin investment vehicles continues to expand.
Bitcoin Price Steady Above $43K
Bitcoin is trading at $43,186, holding the $43,000 support level with a 3% gain over the past week. Analysts attribute the relative stability to sustained ETF-related demand and improving macro conditions. The leading cryptocurrency has been consolidating in a narrow range as markets digest the implications of the new ETF landscape.
Meanwhile, the broader market shows signs of recovery. Ethereum sits at $2,308, and several altcoins are posting gains as risk appetite returns following the Federal Reserve’s decision to hold interest rates steady. The US non-farm payrolls report, released the same day, came in at double expectations, adding complexity to the rate outlook.
ETF Competition Intensifies
The spot Bitcoin ETF race continues to evolve rapidly. Global X, an ETF issuer with over $40 billion in assets, quietly withdrew its application for a spot Bitcoin ETF on February 2, narrowing the competitive field. At the same time, speculation grows that Charles Schwab may enter the market, which could bring additional mainstream credibility and distribution power.
With Fidelity and BlackRock now named among the top 10 Bitcoin ETFs for January performance, the established financial players are clearly winning the early innings of the spot Bitcoin ETF era. The question is whether this momentum can sustain through the Bitcoin halving expected later in 2024.
Why This Matters
The BlackRock-GBTC volume crossover represents more than just a daily trading metric — it signals a fundamental shift in how institutional capital accesses Bitcoin. When the world’s largest asset manager begins outpacing the incumbent crypto-native product, it validates the thesis that traditional finance is taking Bitcoin mainstream. For investors, lower fees mean better long-term returns, and the competitive pressure should continue driving costs down across all Bitcoin investment products.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.