Spot Bitcoin ETFs By BlackRock And Fidelity Make Top 10 In January
In January, BlackRock and Fidelity’s spot Bitcoin ETFs achieved remarkable success, securing positions in the top 10 for all ETFs based on net asset flows, as reported by Morningstar.
Despite only being available for trading from January 11, both funds, namely the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), demonstrated impressive performance. BlackRock’s IBIT garnered $2.7 billion in net asset flows, and Fidelity’s FBTC secured $2.3 billion during the month. Notably, BlackRock, the world’s largest asset manager, showcased its dominance in the ETF space with multiple funds in contention, including its iShares Core S&P 500 ETF claiming the top spot.
The success of these ETFs is noteworthy, especially considering the initial hype surrounding spot Bitcoin ETFs dissipated quickly after their launch. Bloomberg Intelligence analyst Eric Balchunas observed strong performance just a week into trading. Despite a brief surge in Bitcoin’s price to $48,494.62 on the launch day, a subsequent selloff triggered by the conversion of Grayscale Bitcoin Trust (GBTC) to a spot ETF led to a decline, with Bitcoin reaching $38,678.19 by January 23. Interestingly, GBTC, which saw the second-largest outflow in January, underscores the complex dynamics in the ETF landscape. The unique circumstances surrounding Grayscale’s lawsuit against the U.S. Securities and Exchange Commission have also been cited as influencing the approval of other ETFs in this category.
Clever Robot News Desk 6th February 2024