Newly approved spot Bitcoin">Bitcoin exchange-traded funds (ETFs) logged impressive initial interest, with top options showing a combined $532 million entering funds like BlackRock’s and Fidelity’s since launch. However, major outflows from Grayscale plus swiftly sliced fees already underline cutthroat battles on the horizon.
Data from BitMEX Research revealed BlackRock leading inflows over two days at approximately $500 million. Yet the same period saw Grayscale’s GBTC, the previously dominant Bitcoin fund, hemorrhage $579 million in what could be just early tremors.
The long-awaited ETF approvals immediately triggered rivalry between giants like BlackRock and Fidelity as expected. With Franklin Templeton and Valkyrie already slashing fees before products listed, securing market share will clearly take aggressive positioning.
Narrow spreads and reduced rates seek to lure both institutional dollars and retail traders migrating from crypto-native options. But warnings from stalwarts like Merrill Lynch and tepid Bitcoin price gains despite celebrations show work remains to convince skeptics of these vehicles’ investment merit.
