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Spot Bitcoin ETFs Gain Traction

Highlights:

  • 56% of inflows in Fidelity and 26% in BlackRock came from BTC ETFs.
  • Spot BTC ETFs saw a total net inflow of $105.1 million on Monday.
  • IBIT has surpassed GBTC to become the largest spot BTC ETF in the world as of May 28.

The approval of US spot Bitcoin ETFs on January 11, 2024, has sparked significant interest among investors. Notably, Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) have emerged as dominant players. According to Bloomberg ETF analyst Eric Balchunas, citing data from Bloomberg Intelligence, these ETFs accounted for 26% and 56% of year-to-date inflows for BlackRock and Fidelity, respectively

Data from Farside Investor indicates that FBTC and IBIT have seen $8.9 billion and $16.6 billion in inflows since they launched nearly five months ago.

Comparative Analysis of Leading ETF Providers

BlackRock and Fidelity’s performance in the Bitcoin ETF realm stands out notably compared to other financial giants. Vanguard, which does not offer any Bitcoin ETFs, maintains its leadership in the broader ETF market, boasting a total inflow of $102.8 billion for 2024. This exceeds BlackRock’s total ETF inflows, which amount to $65.1 billion. Currently, BlackRock manages 429 ETFs with assets totaling $2.8 trillion, while Fidelity oversees 70 ETFs valued at $74 billion

Meanwhile, Invesco has recorded $34.7 billion in ETF flows this year. However, only 0.9% of this total has originated from its BTC ETF, which has garnered $317.3 million in total inflows for the first five months of the year.

Bitcoin ETFs See $105M in Daily Inflows, Extending Positive Streak to 15 Days

US spot Bitcoin ETFs recorded their 15th consecutive day of net inflows on June 3, adding $105.1 million. According to data from Farside Investor, Fidelity’s FBTC led the inflows with $77 million. Bitwise’s BITB saw net inflows of $14.3 million, and Ark Invest, along with 21Shares’ ARKB, added $10.7 million. 

On Monday, the two largest spot Bitcoin ETFs from BlackRock and Grayscale reported no flows. Meanwhile, VanEck and WisdomTree’s spot ETFs noted minimal inflows, each under $2 million. The 15 days of continuous inflows from the US spot Bitcoin ETFs are the second-longest positive streak since their launch, just behind the 17 days of consecutive net inflows that began in January.

Spot Bitcoin ETFs Flow
Source: Farside Investor

IBIT Surpasses GBTC in Bitcoin Holdings

On May 28, BlackRock’s IBIT surpassed the Grayscale Bitcoin Trust (GBTC) as the world’s largest spot BTC ETF. According to the Apollo Bitcoin Tracker, IBIT currently holds 291,567 BTC, valued at slightly over $20 billion at current market prices.

Initially, Grayscale held 620,000 Bitcoin when the GBTC converted into spot form. However, it has experienced significant outflows since then, and its holdings have dwindled to 285,139 BTC, valued at approximately $19.6 billion at current market prices.

Read More: BlackRock Adds $4.1M of its IBIT Spot Bitcoin ETF to Income and Bond Funds

Thailand Joins the Fray

Thailand’s Securities and Exchange Commission (SEC) has joined the Bitcoin ETF trend by approving One Asset Management (ONEAM) to launch a BTC ETF, as reported by the Bangkok Post. However, it will be available only to wealthy and institutional investors. The ETF is named the ONE Bitcoin ETF Fund of Funds Unhedged and is set to be distributed between May 31 and June 6.

Learn More

Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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