BlackRock and Fidelity's Bitcoin ETFs Break Records in First Month of Trading
Summary:
BlackRock and Fidelity's Bitcoin exchange-traded funds (ETFs) have amassed more than $3 billion each in their first 17 trading days, surpassing any ETFs launched in the U.S. over the last 30 years. The success of these ETFs is widely attributed to the significant daily inflows since their inception. ARK 21Shares' Bitcoin ETF and Bitwise Bitcoin ETF have also made it to the top 25, ranking 20th and 22nd respectively. BlackRock's Bitcoin ETF is currently at fifth position in this year's largest ETFs by flows, closely followed by Fidelity's FBTC in the eighth position.
Bitcoin exchange-traded funds (ETFs) from investment giants BlackRock and Fidelity have broken records with their significant asset acquisition in their initial month of trading, outperforming any other ETFs introduced in the US over the past three decades. According to Bloomberg Intelligence, BlackRock's IBIT and Fidelity's FBTC have each gathered over $3 billion in assets in the first 17 trading days, outpacing more than 5,500 other ETFs. Bloomberg's Eric Balchunas affirms that these two ETFs are on a level entirely of their own as demonstrated in a Feb. 8 tweet.
BlackRock's iShares Climate Conscious & Transition MSCI USA ETF, which launched on June 8, 2023, held the previous record for attracting the highest assets under management (AUM) in its first month, amassing $2.2 billion. Both BlackRock and Fidelity's Bitcoin ETFs' robust performance is particularly striking, given that most other ETFs on the list utilized a "Bring Your Own Assets" approach, indicating one primary investor contributing to their AUM. However, BlackRock and Fidelity's ETFs have experienced consistent daily inflows since their inception, a feat described by Balchunas as "truly unparalleled."
Ranks 20 and 22 in the top 25 were secured by the ARK 21Shares' Bitcoin ETF (ARKB) and Bitwise (BITB) Bitcoin ETF, respectively. ProShares Bitcoin Strategy ETF, introduced as a futures product in October 2021, also made the ranking in the seventh position. Note that Bloomberg's data excluded ETFs that were converted, like Grayscale's GBTC, and around 100 mutual funds that transitioned into ETFs.
Balchunas acknowledged that the extensive departures from Grayscale's Bitcoin ETF may have influenced the impressive performance of the spot Bitcoin ETFs, and some of these ETFs might have received starter funding. However, he insists that none of these aspects are sufficient to dismiss these outcomes. Balchunas emphasizes that unseen competition forces may be at play, with multiple ETFs launching on the same day makes all parties strive for success.
Also noteworthy is the performance of the ETFs IBIT and FBTC when compared to the largest ETFs by flows in the current year. Bloomberg's data shows BlackRock's Bitcoin ETF securing the fifth position, while Fidelity's FBTC is not far behind, ranking in the eighth position. Only three broad index funds following the S&P 500 and Vanguard's Total Stock Market ETF have outperformed the IBIT.
Published At
2/9/2024 5:45:02 AM
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