Bitcoin (BTC-USD) exchange-traded funds (ETFs) have made it easier for people to get exposure to Bitcoin. Some analysts believe that Bitcoin’s 60% rise this year is due to ETFs legitimizing and simplifying access to Bitcoin.
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Grayscale’s Market Adaptation
Previously dominating the Bitcoin ETF scene, Grayscale Investments is recalibrating as competition heats up. Grayscale CEO, Michael Sonnenshein indicates that the outflows from the Grayscale Bitcoin Trust (NASDAQ:GBTC), which topped $15 billion over the last three months, are stabilizing. This shift comes as BlackRock (NASDAQ:BLK) and Fidelity (NASDAQ:FBTC) launch their ETFs following the SEC’s approval, intensifying the market rivalry.
Despite these challenges, the rise in Bitcoin’s value has helped maintain Grayscale’s assets at $22 billion. Interestingly, Grayscale plans to roll out a new Bitcoin Mini Trust with reduced fees to remain competitive—its current 1.5% fee stands higher than most rivals.
Evolving Bitcoin ETF Market
The Bitcoin ETF market is booming and continuing to grow, with trading volumes surpassing $200 billion. And the ETF firms themselves are accumulating Bitcoin at an insane rate. These are some of the amounts of Bitcoin added to the ETFs this week:
BlackRock (NASDAQ: IBIT) +8,780
Fidelity (NASDAQ: FBTC) +62.41
Bitwise (NASDAQ: BITB) +1,240
Valkyrie (NASDAQ: BTF) +49.62
The numbers are even more shocking over the past 30 days:
BlackRock +70,120
Fidelity +38,920
Bitwise +5,480
Valkyrie +2,800
Compared to the rest of the BTC ETF market, BlackRock and Fidelity are leagues above their peers in the number of Bitcoin they’ve accumulated. We can see this using the TipRanks ETF Comparison chart below, with IBIT and FBTC increasing by 60.87% and 60.86% respectively.
However, there are still hurdles. Jan van Eck, CEO of VanEck, points out that major brokerage platforms are still hesitant about recommending Bitcoin ETFs to advisors, suggesting a cautious approach toward full acceptance. Despite these challenges, the market is showing signs of stabilization. Individual investors continue to demonstrate interest, which could pave the way for increased institutional involvement.
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