BlackRock and Fidelity’s spot Bitcoin exchange-traded funds (ETFs) have emerged as major contributors to the companies’ overall ETF inflows this year.
According to data from Bloomberg Intelligence, these Bitcoin ETFs have accounted for 26% and 56% of BlackRock and Fidelity year-to-date inflows, respectively.
Spot Bitcoin ETF Data
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have collectively attracted substantial investments since their launch nearly five months ago.
According to Farside Investor data, IBIT has witnessed $16.6 billion in inflows, with FBTC receiving $8.9 billion. Despite these figures, Vanguard, which does not offer any spot Bitcoin ETFs, remains the leader in total ETF inflows for 2024, amassing $102.8 billion, surpassing BlackRock’s $65.1 billion.
To those asking, $IBIT is 26% of BlackRock’s flows and 56% of Fidelity’s flows, so yes, def having impact on leaderboard.
— Eric Balchunas (@EricBalchunas) June 3, 2024
BlackRock remains the largest ETF provider in the U.S. stock market, with 433 ETFs listed and $2.8 trillion in assets under management, while Fidelity holds the 11th position with 70 ETFs and $74.04 billion in assets.
In recent weeks, the flow of investments into these products has plateaued, with many issuers experiencing days of zero inflows and outflows. For instance, the Franklin Bitcoin ETF (EZBC) reported no activity since May 16, according to Farside Investors.
Despite this, the overall market for spot Bitcoin ETFs hit a milestone on May 24, with all ETFs collectively holding over one million BTC, most of which is allocated to U.S. products among the 32 available ETFs.
BlackRock’s IBIT Surpassed Grayscale’s GBTC
Meanwhile, BlackRock’s IBIT recently surpassed the Grayscale Bitcoin Trust (GBTC) as the world’s largest spot Bitcoin ETF on May 28. According to the Apollo Bitcoin TRACKER, IBIT now holds 291,567 BTC, valued at over $20 billion at current prices.
Grayscale, which initially led the market with 620,000 BTC, has seen substantial outflows and currently holds 285,139 BTC, worth approximately $19.6 billion.
According to Aniket Ullal of CFRA, BlackRock’s increasing dominance in the spot Bitcoin ETF market shows that being a first mover doesn’t guarantee long-term success.
Early players like Grayscale faced challenges such as selling pressure and high fees of 1.5%, compared to about 0.25% charged by newer competitors like Fidelity and ARK Investments. Nate Geraci of the ETF Store emphasized that Grayscale’s high fees deter advisors and investors.
Ullal also noted that BlackRock’s success is partly due to its strong distribution network among financial advisors and wealth managers.
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