At the end of trading on Thursday, the amount of trading activity for BlackRock’s Bitcoin exchange-traded fund that deals with actual Bitcoin surpassed that of a similar fund from Grayscale Investments, achieving this milestone for the first time since these types of funds started being traded in January. In the initial three weeks of trading for US-based spot bitcoin funds, the Grayscale Bitcoin Trust ETF (GBTC) has been a major player, representing almost 50% of the trading – specifically around $14.4 billion out of a total of $13 billion across 10 ETFs in this category, as per Bloomberg Intelligence. However, despite GBTC’s impressive trading activity of approximately $292 million on a recent Thursday, data from Yahoo Finance indicates that BlackRock’s iShares Bitcoin Trust (IBIT) slightly surpassed it with trading volumes reaching $302 million. Despite GBTC’s substantial trading activity, this has not translated into an increase in investment inflows into the fund. Since transitioning to an ETF format, the product has experienced a total outflow of $5.6 billion up until Wednesday. For further details, see the article discussing whether the ongoing withdrawal from GBTC might lead to it losing its status as the largest bitcoin ETF. Observers of the industry have noted that some investors in Grayscale have been keen to divest from GBTC due to a prolonged period where they couldn’t trade their trust shares at the value of the underlying assets. GBTC has a management fee of 1.5%, which is considerably more than similar funds which have costs between 0.19% and 0.39%. John Hoffman, who is in charge of sales and distribution at Grayscale, explained to Blockworks in the past that due to the multiple investing strategies that large capital markets ETFs accommodate, the varied range of GBTC shareholders is expected to maintain the dynamics of money entering and leaving the fund. Recently, Grayscale has continued to experience a decrease in funds, but in the meantime, IBIT and the Fidelity Wise Origin Bitcoin Fund (FBTC) have attracted significant interest, receiving approximately $2.8 billion and $2.5 billion in new investments, respectively, since their launches. For more details, consider the article titled “BlackRock-Fidelity bitcoin ETF asset race: a toss-up between two financial giants.” Despite significant withdrawals from the GBTC, the total inflows to the 10 physical Bitcoin ETFs climbed above $1 billion again as of Monday, reaching close to $1.5 billion by Wednesday. Stay informed about the upcoming major news – sign up for our complimentary daily newsletter.