BlackRock and Fidelity's spot Bitcoin ETFs are off to a strong start on Thursday, leading among 11 spot bitcoin ETFs with a combined $2.2 billion in trading volume so far.
Shown below is how trading volume is distributed among different ETFs:
(each unit = $1 million)
- Grayscale Bitcoin Trust (GBTC US Equity): 1,001 (44.5%)
- iShares Bitcoin Trust (IBIT US Equity) – BlackRock: 611 (27.1%)
- Fidelity Wise Origin Bitcoin (FBTC US Equity) – Fidelity: 394 (17.5%)
- ARK 21Shares Bitcoin ETF (ARKB US Equity) – 21 Shares: 150 (6.6%)
- Bitwise Bitcoin ETF (BITB US Equity) – Bitwise: 49 (2.2%)
- Invesco Galaxy Bitcoin ETF (BTCO US Equity) – Invesco: 19 (0.9%)
- Valkyrie Bitcoin Fund (BRRR US Equity) – Valkyrie: 6 (0.3%)
- VanEck Bitcoin Trust (HODL US Equity) – VanEck: 13 (0.6%)
- Franklin Bitcoin ETF (EZ8C US Equity) – Franklin: 3 (0.1%)
- WisdomTree Bitcoin Fund (BTCW US Equity) – WisdomTree: 2 (0.1%)
- Hashdex Bitcoin Futures ETF (DEFI US Equity) – Hashdex: 2 (0.1%)
JPMorgan analyst Kenneth Worthington examined how some companies in the asset management industry may be affected by this rule change. As the primary broker and exchange for Bitcoin ETFs, Coinbase may face both upside and risk:
“Given Coinbase's stock price appreciation, we see the risks as more relevant to shareholders.”
Coinbase has been appointed as custodian for eight of the 11 Bitcoin Spot ETFs approved by the SEC. It may also receive support from fees tied to custody sharing agreements. However, the potential for a “lose/lose” situation exists as a Bitcoin ETF could rival Coinbase, causing clients to switch to stock brokers and hurting volume.
*This is not investment advice.