Crypto:
30188
Bitcoin:
$69.855
% 4.73
BTC Dominance:
%54.4
% 0.13
Market Cap:
$2.44 T
% 3.67
Fear & Greed:
74 / 100
Bitcoin:
$ 69.855
BTC Dominance:
% 54.4
Market Cap:
$2.44 T

BlackRock and Fidelity’s Bitcoin ETFs Take the Spotlight with Record Inflows

Bitcoin Etfs

BlackRock and Fidelity’s spot Bitcoin ETFs, IBIT and FBTC respectively, have become the hottest funds in their lineup within just 50 days of trading. This is according to data shared by Bloomberg ETF analyst Eric Balchunas.

Launched in January 2024, IBIT and FBTC have consistently broken records and outperformed the broader ETF market. This strong showing reflects Bitcoin’s growing acceptance within traditional finance.

Dominating Inflows

Data reveals that IBIT accounts for over half of BlackRock’s year-to-date net inflows, despite the company’s vast ETF portfolio of 420 funds. Notably, IBIT has attracted double the capital compared to any other BlackRock ETF since its launch.

Similarly, FBTC captures a staggering 70% of Fidelity’s YTD flows, bringing in 5 times more capital than any other Fidelity ETF. These figures highlight the significant role these Bitcoin ETFs play in attracting new investors.

Unprecedented Streak

Balchunas further emphasizes the remarkable achievement of IBIT and FBTC by securing a 49-day streak of continuous cash inflows. This feat is uncommon in the ETF market, placing them fourth among active streaks.

Only $COWZ, $CALF (both exceeding 100 days), and $SDVY surpass their current streak. The sustained inflows into IBIT and FBTC demonstrate growing investor interest and confidence in these vehicles.

Investor Resilience

Recent discussions have questioned the behavior of ETF investors, particularly during market dips. However, actual market movements paint a different picture.

Balchunas challenges the notion that ETF investors lack sophistication or sell off during downturns. He points to the “Newborn Nine” group of ETFs collectively receiving roughly $1.2 billion over the past five days, even with an 8% decline in Bitcoin prices.

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This inflow contradicts the idea of widespread withdrawals from Bitcoin ETFs and suggests strategic investment decisions by ETF holders.

Understanding Outflows from GBTC

Balchunas clarifies that recent outflows from $GBTC (Grayscale Bitcoin Trust) primarily involve strategic movements by Genesis, not a broader lack of confidence among ETF investors. These movements have a largely neutral impact.

He reinforces this point with historical data showcasing ETF investor resilience. In 2008, despite a 35% drop in the S&P 500, ETFs attracted $167 billion in inflows. Similarly, during an 18% S&P 500 decline in 2021, ETFs brought in another $600 billion. These historical events highlight the long-term perspective and confidence of ETF investors across various market conditions.


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