02 March, 2024

BlackRock and Fidelity’s Bitcoin ETFs Shatter Records with Over $3 Billion in Assets

3 weeks ago

12 Feb, 2024

  • BlackRock’s IBIT and Fidelity’s FBTC Bitcoin ETFs have each surpassed $3 billion in assets in their first 17 days, setting a new record in the ETF industry.
  • Other cryptocurrency ETFs, including ARK 21Shares’s ARKB and Bitwise’s BITB, also ranked within the top 25 by assets.
  • The ProShares Bitcoin Strategy ETF ranks seventh among the top 25 ETFs.

BlackRock and Fidelity Investments have achieved a historic milestone with their spot Bitcoin exchange-traded funds (ETFs), IBIT and FBTC, respectively, amassing over $3 billion in assets each within the first 17 trading days of their launch. This unprecedented inflow surpasses any ETF debut in the United States over the past three decades out of a list comprising more than 5,500 ETFs. This performance places both ETFs in a unique position in the market, according to Bloomberg ETF analyst Eric Balchunas, who shared these insights in a recent post.

Prior to the introduction of these Bitcoin ETFs, the record for the highest assets under management (AUM) in the first month was held by BlackRock’s iShares Climate Conscious & Transition MSCI USA ETF, which garnered $2.2 billion after its launch on June 8, 2023. Unlike many ETFs that rely on significant initial investments from a single source, IBIT and FBTC have witnessed consistent daily inflows, a trend described as “literally unprecedented” by Balchunas.

Other cryptocurrency-focused ETFs, such as ARK 21Shares’s spot Bitcoin ETF (ARKB) and Bitwise’s spot Bitcoin ETF (BITB), have also made significant strides in the market. These ETFs have ranked within the top 25 by assets, capturing the 20th and 22nd positions. In addition, the ProShares Bitcoin Strategy ETF, a futures product, has secured a notable position as the seventh among the top 25 ETFs by assets. 

Balchunas noted that the collected data “excludes” ETFs transitioning from other formats, such as Grayscale’s GBTC and mutual funds converted to ETFs. Further emphasizing the market dynamics, Balchunas pointed out the “competitive environment” as a key driver behind the remarkable performance of these new ETFs. He suggested that this competition fosters a landscape where issuers are motivated to “hustle,” thereby attracting significant investor interest and contributing to the ETFs’ success.

Bitcoin ETFs have continued to attract significant investment, with a notable streak of net inflows extending for nine consecutive days, per data from Farside Investors. On February 7, 2024, the total net inflow reached $145 million, with FBTC and IBIT contributing significantly to this trend.

BlackRock’s IBIT and Fidelity’s FBTC not only stand out for their record-breaking initial inflows but also maintain strong positions among the largest ETFs by flows for the year, as per Bloomberg’s February 5 figures. IBIT is ranked fifth, trailing only three broad index funds and Vanguard’s Total Stock Market ETF, with FBTC not far behind in eighth place.



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