BlackRock and Fidelity's Bitcoin ETFs Dominate January Inflows, Grayscale Sees Outflows
Summary:
Bitcoin Exchange-Traded Funds (ETFs) from BlackRock and Fidelity have seen significant inflows in January, totaling approximately $4.8 million. BlackRock's iShares Bitcoin Trust (IBIT) positioned eighth with $2.6 billion in net flows, while Fidelity's Wise Origin Bitcoin Trust (FBTC) secured the tenth spot with $2.2 billion net inflows. Conversely, the Grayscale Bitcoin Trust (GBTC) saw the second-highest outflows among ETFs in the same month. Morningstar's report highlights six straight days of positive inflows in US Bitcoin ETFs, predominantly in BlackRock and Fidelity's funds.
In recent data, Bitcoin exchange-traded funds (ETFs) from BlackRock and Fidelity notably dominated the list of ETFs having the most significant January inflows, with a total amounting to approximately $4.8 million. The iShares Bitcoin Trust (IBIT) from BlackRock saw net inflows estimated at $2.6 billion, ranking eighth overall, whereas the Wise Origin Bitcoin ETF (FBTC) from Fidelity secured the tenth spot with around $2.2 billion in net flows, according to a Morningstar report by analyst Lan Anh Tran. The report also revealed that the Grayscale Bitcoin Trust (GBTC) claimed the second highest outflows in January, with an estimated value of $5.7 billion exiting the fund.
Nate Geraci, the head of ETF Store, shared these findings in a post, expressing surprise at the significant influence of the Bitcoin-focused ETFs. He further suggested a competition was unfolding between BlackRock's and Fidelity's funds, with these two dominating the nine new Bitcoin funds. Geraci also pointed out two ETFs - one by ARK Invest and 21 Shares, another by Bitwise, each with assets under management of less than $650 million, stating that they are emerging as a "strong middle class" and predicted that they would soon achieve $1 billion in assets.
The report by Morningstar arrives when US Bitcoin ETFs have experienced six consecutive days of net deposit inflows amounting to nearly $715 million, where most of the inflow majority was received by BlackRock and Fidelity funds, according to data shared by BitMEX Research.
In the week spanning from Jan. 26 to Feb. 2, the total inflows into the nine newly launched Bitcoin funds outweighed the ongoing outflows from Grayscale's fund, which has been slowing down. In contrast, on Feb. 2, GBTC reported its second-lowest outflow day, with $144.6 million being removed.
However, following this six-day period of inflows, there came a cartwheeling four-day of outflows, from Jan. 22 to 25, when GBTC reached its peak outflow. A whopping $431.8 million net exited from all ten Bitcoin ETFs.
Reactingly, Bloomberg's senior ETF analyst, Eric Balchunas, conveyed in a post that the comeback of the nine ETFs, excluding the GBTC, right after the dip during the previous week, was an impressive spectacle. Typically, after such a hyped launch, there tends to be a slow decline, but for these ETFs to have net inflows during their third week of trading indicates these funds are on a steady foot, he added.
Published At
2/5/2024 6:31:32 AM
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