Despite having a massive head start on the Bitcoin exchange-traded fund (ETF) market when Bitcoin ETFs were approved in January, Grayscale has seen its first-mover advantage evaporate.
The firm is a leading fund manager within the crypto space, and last year won its appeal against the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. The trust previously operated like a closed-end fund but was effectively the only such investment product on the market.
When its converted fund was among several Bitcoin ETFs approved by the regulator on Jan. 10, Grayscale held most of the cards.
“Grayscale was the first in the space to offer an ‘ETF-type product,’” Tom Cohen, head trader at crypto asset manager Algoz Technologies, told Decrypt. “Grayscale was always going to lose market share for their BTC and ETH product…
