The battle for supremacy in the U.S. spot Bitcoin ETF market just got spicy. BlackRock’s IBIT has dethroned Grayscale’s Bitcoin Trust ETF (GBTC) in daily trading volume, marking a potential turning point in the young industry.

Initially, GBTC reigned supreme, gobbling up almost half of all trading volume in the first three weeks after launch. However, on Thursday, the tides turned. BlackRock’s IBIT raked in $302 million, edging out GBTC’s $292 million, signifying a potential shift in investor sentiment.

Several factors might be driving this change. Grayscale has seen a concerning $5.6 billion net outflow since its conversion, with investors likely eager to cash out after being locked in previously. Additionally, GBTC’s hefty 1.5% fee pales in comparison to competitors’ offerings ranging from 0.19% to 0.39%.

Meanwhile, BlackRock’s IBIT and the Fidelity Wise Origin Bitcoin Fund (FBTC) are basking in investor sunshine, having attracted a combined $5.3 billion in net inflows. This suggests a clear preference for newer, lower-fee options.

The competitive heat is rising. Invesco and Galaxy Asset Management, sensing the shift, have slashed their fees to 0.25%, joining the cost-conscious pack. This highlights the dynamic nature of the market and the fight for investor dollars.

Despite individual fund fluctuations, the overall picture for spot Bitcoin ETFs remains positive. Net inflows surpassed $1 billion and are nearing $1.5 billion, providing much-needed stability to Bitcoin’s price, and pushing it back above $40,000.

BlackRock’s ascent and the fee adjustments by others signal a potential power shift. While Grayscale remains a significant player, its outflows and relatively high fees raise questions about its ability to maintain its dominance. The coming weeks will be crucial in determining whether this trend continues and how Grayscale responds to remain relevant in this rapidly evolving landscape.

Also See: HK SFC Receives First Bitcoin ETF Application