BlackRock and Fidelity's Bitcoin ETFs See Major Inflows as Crypto Investments Soar
Summary:
This year, BlackRock and Fidelity's Bitcoin-focused exchange-traded funds (ETFs) have significantly contributed to the companies' total inflows. Specifically, they account for 26% and 56% of the year-to-date inflows for BlackRock and Fidelity respectively. Launched approximately five months ago, BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund have gathered inflows of $16.6 billion and $8.9 billion, respectively. Despite not offering any Bitcoin ETFs, Vanguard leads with $102.8 billion in total ETF inflows in 2024, ahead of BlackRock's $65.1 billion. Recent trends indicate a stabilization in Bitcoin ETF flows with some issuers recording zero inflows and outflows. Majority of inflows into Bitcoin investment products are channeled into IBIT, FBTC, and ARK 21Shares Bitcoin ETF.
BlackRock and Fidelity's Bitcoin-focused exchange-traded funds (ETFs) have made up a significant percentage of the total inflows for the companies this year. In terms of year-to-date inflows, 26% for BlackRock and 56% for Fidelity are from Bitcoin ETFs, says Eric Balchunas, a Bloomberg ETF analyst, referencing Bloomberg Intelligence data. Since their debut about five months ago, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) have attracted $16.6 billion and $8.9 billion in inflows respectively, based on information obtained from Farside Investor.
In comparison, despite not offering any Bitcoin ETFs, Vanguard has received a total of $102.8 billion worth of ETF inflows, surpassing BlackRock which stands at $65.1 billion in 2024.
BlackRock has 429 listed ETFs holding a total of $2.8 trillion in managed assets, Stock Analysis data reveals. On the flip side, Fidelity only manages 70 ETFs with a combined total of $74 billion in assets. Invesco, meanwhile, has $34.7 billion pouring into its ETFs this year. Its Bitcoin ETF, however, only accounts for 0.9% of these inflows at a total of $317.3 million in the first five months.
Most recently, BlackRock's IBIT overcame the Grayscale Bitcoin Trust (GBTC) to be the largest spot Bitcoin ETF in the world as of May 28. The IBIT currently contains 291,567 BTC translating to $20 billion at current exchange rates based on the Apollo Bitcoin Tracker. Grayscale began with 620,000 Bitcoins but frequent outflows have brought its tally down to 285,139 Bitcoins, valued at $19.6 billion currently.
Bitcoin ETF trends appear to be steadying lately, with some issuers observing periods of no inflows or outflows. Take, for instance, the Franklin Bitcoin ETF (EZBC) that hasn't seen any movements since May 16, as per Farside Investors. Investment in Bitcoin products excluding Grayscale averages $141.7 million every trading day. This is largely attributed to inflows into IBIT, FBTC and, to a smaller extent, the ARK 21Shares Bitcoin ETF (ARKB).
Published At
6/4/2024 4:22:53 AM
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