BlackRock and Fidelity Bitcoin ETFs Dominate Top 10 January Inflows with Massive $4.8B Surge

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By BitcoinWiki News

Key Takeaways:

  • BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin ETF (FBTC) are among the top 10 funds with the highest inflows in January for BTC ETFs.
  • US currently has more than 3,100 ETFs as of December 31, 2023.
  • Grayscale Bitcoin Trust (GBTC) saw around $6 billion in outflows in January.
  • BlackRock and Fidelity’s ETFs are in a clear two-horse race among the nine new Bitcoin funds.
  • Other emerging players in the market include the joint ETF from ARK Invest and 21 Shares, and Bitwise’s fund.
  • U.S. spot Bitcoin ETFs recorded six consecutive days of positive net inflows, driven by BlackRock and Fidelity’s funds.
  • Net inflows into the new spot Bitcoin funds surpassed the outflows from GBTC, which experienced its second-lowest outflow day on February 2.
  • Reputation, size, existing footprint, and management fees will shape the competitive landscape among Bitcoin spot ETF providers.
  • BlackRock has set its fee for the iShares ETF at 0.12% for the first 12 months or until the first $5 billion in assets under management
  • After reaching $5 billion in assets under management, the fee will increase to 0.25%.

Title: BlackRock and Fidelity Bitcoin ETFs Among Top 10 in Inflows

Introduction:
– BlackRock and Fidelity’s spot Bitcoin exchange-traded funds (ETFs) have emerged in the top 10 funds with the highest inflows in January.

Highlights of Inflows and Outflows:
– BlackRock’s iShares Bitcoin Trust (IBIT) secured the eighth position with $2.6 billion in net flows.
– Fidelity’s Wise Origin Bitcoin ETF (FBTC) claimed the tenth spot, attracting $2.2 billion in net flows.
– The report also revealed that the Grayscale Bitcoin Trust (GBTC) experienced significant outflows, with $5.7 billion exiting the fund in January.

Market Trends and Analysis:
– BlackRock and Fidelity’s ETFs have established themselves as the leading contenders in a “clear two-horse race” among the nine new Bitcoin funds.
– Emerging players such as ARK Invest, 21 Shares, and Bitwise are expected to develop into a “strong middle class,” reaching $1 billion in assets in the near future.
– U.S. spot Bitcoin ETFs recorded six consecutive days of positive net inflows totaling nearly $715 million, driven primarily by BlackRock and Fidelity’s funds.

Implications and Predictions:
– Lower-fee ETFs are expected to attract more inflows in the short term, shaping the competitive landscape among Bitcoin spot ETF providers.
– BlackRock has set its fee for the iShares ETF at 0.12% for the first 12 months or until the first $5 billion in assets under management, demonstrating a competitive pricing strategy.

Conclusion:
– The increasing interest in Bitcoin as an investment asset, as highlighted by the dominance of BlackRock and Fidelity’s funds in terms of inflows, signifies the potential for long-term growth and sustained popularity of spot Bitcoin ETFs.

References:
– Morningstar research analyst Lan Anh Tran, Nate Geraci, Eric Balchunas, Aurelie Barthere, and data from BitMEX Research.

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