Fidelity’s FBTC net inflows totaled $37.3 million, surpassing BlackRock’s IBIT with $18.7 million, in a rare event on April 18 in the spot BTC ETF market. This marked the first time BlackRock faced competition from a competitor for inflows. Despite Grayscale’s AUM being less than $20 billion, BlackRock maintains over $17 billion in investor demand.
Many experts, including Bloomberg’s Eric Balchunas, attributed the significant GBTC exits to ongoing bankruptcy proceedings such as FTX and Genesis. Additionally, observers have pointed out Grayscale’s industry-high fund fee of 1.5% as another contributing factor to the liquidations.