Summary
Five US spot bitcoin ETFs now have over $1 billion in assets, while the other half of the field lags behind. Grayscale Investments’ Bitcoin Trust ETF (GBTC) leads the segment with $23.8 billion in assets, although this has declined since converting to an ETF. GBTC has seen outflows of over $6.8 billion since becoming an ETF, while the other nine spot bitcoin funds have gained $11.4 billion in net inflows. BlackRock’s iShares ETF and Fidelity Investments’ Wise Origin Bitcoin Fund have been the fastest growing, with asset bases of $6 billion and $4.3 billion respectively. The Ark 21Shares Bitcoin ETF and Bitwise Asset Management’s Bitcoin ETF have $1.4 billion and $1.1 billion assets under management respectively. The success of the leading funds is making it more difficult for the rest of the field to compete. Smaller funds, such as those by Franklin Templeton and WisdomTree, have significantly less assets and may face liquidation down the line. However, industry insiders expect another bitcoin ETF to surpass the $1 billion mark in the future.
Key Points
1. Five US spot bitcoin ETFs now have at least $1 billion in assets, with Grayscale Investments’ Bitcoin Trust ETF (GBTC) leading the segment with $23.8 billion in assets.
2. BlackRock’s iShares ETF (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) have been the fastest-growing spot bitcoin ETFs, with asset bases of about $6 billion and $4.3 billion, respectively.
3. The intense fee competition in the spot bitcoin ETF segment makes scale of utmost importance, and the success of larger players like BlackRock, Fidelity, Ark, and Bitwise will make it more difficult for other ETFs to compete.