BlackRock and Fidelity Bitcoin ETFs Among Top 10 in January Inflows
Date: 2024-02-05 Author: Dima Zakharov Categories: BUSINESS
BlackRock and Fidelity Shine in January
BlackRock and Fidelity, two giants in the world of finance, have made headlines by securing positions in the top 10 ETFs with the highest inflows for January. The iShares Bitcoin Trust by BlackRock (IBIT) claimed the eighth spot, with net inflows totaling $2.6 billion. Meanwhile, Fidelity Wise Origin's Bitcoin ETF (FBTC) secured the tenth position, recording net inflows of $2.2 billion. This data comes from a report by analyst Lan Anh Tran of Morningstar research, who used approximate data from issuer websites.
Grayscale Bitcoin Trust Faces Outflows
Contrastingly, Grayscale Bitcoin Trust (GBTC) experienced the second-largest outflows among ETFs in January, with an estimated $5.7 billion exiting the fund. This development has surprised many in the investment community.
Nate Geraci, the president of ETF Store, expressed his astonishment by stating, "I never thought I'd see this day." In a separate post, Geraci suggested that BlackRock and Fidelity are engaged in a fierce competition among the nine new Bitcoin funds. He also predicted that the ETFs from ARK Invest, 21 Shares, and Bitwise, all managing assets below $650 million, are on track to reach the billion-dollar mark in the near future.
Positive Inflows for American Bitcoin ETFs
The report from Morningstar comes as American spot Bitcoin ETFs have seen six consecutive days of net positive inflows, totaling nearly $715 million. The majority of these inflows have been attributed to BlackRock and Fidelity, according to data published by BitMEX Research on February 3.
Between January 26 and February 2, the inflows into the nine new spot Bitcoin ETFs exceeded the lingering outflows from Grayscale, which had slowed over the week. GBTC experienced its second-largest outflow on February 2, amounting to $144.6 million.
This six-day influx followed a four-day outflow surge from January 22 to 25, during which GBTC faced its maximum outflows. Overall, the ten ETFs accumulated a net profit of $431.8 million during this period.
Eric Balchunas, a senior ETF analyst at Bloomberg, commented on the situation on February 3, describing it as "truly fascinating" to witness the nine ETFs excluding GBTC "coming back after a rough week."
