BlackRock and Fidelity’s Bitcoin ETF enters the top 10 with $4.8 billion inflows in January
BlackRock and Fidelity’s spot Bitcoin ETFs ranked among the top 10 ETFs with the most inflows in January, reaching approximately $4.8 billion.
BlackRock’s iShares Bitcoin Trust ranked an impressive eighth with $2.6 billion in net flows, while Fidelity Wise Origin Bitcoin ETF ranked 10th with $2.2 billion, according to a February 3 report by Morningstar research analyst Lan Anh Tran. .
These inflows contrast sharply with Grayscale Bitcoin Trust, which experienced the second-highest outflows among ETFs, losing approximately $5.7 billion.
Nate Geraci, president of investment advisory firm ETF Store, expressed surprise at X’s development, highlighting the fierce competition between BlackRock’s and Fidelity’s products.
Gerachido famous A “strong middle class” has emerged among Bitcoin funds led by ARK Invest and 21 Shares, with Bitwise rapidly approaching $1 billion in assets under management.
The landscape for US spot Bitcoin ETFs has been dynamic. For the sixth day in a row, net inflows totaling $715 million came primarily into funds from BlackRock and Fidelity. This period of gains follows a series of outflows, particularly from the Grayscale fund, which saw outflows decline significantly over the same week.
This dynamic is further complicated by the significant holdings of BlackRock and Fidelity, which currently account for about 0.5% of the total Bitcoin supply, indicating significant support for the cryptocurrency from the traditional financial sector. In contrast, MicroStrategy, the largest individual holder of Bitcoin, and Grayscale, which has massive holdings, emphasize different approaches to Bitcoin investing, from corporate acquisition strategies to investment funds.
This shift in investor preferences is challenging for Grayscale, a pioneering cryptocurrency-based digital asset manager. Grayscale is facing significant outflows as its 1.5% ETF fee comes under scrutiny, especially as it maintains the highest fee among spot Bitcoin ETF issuers.
Grayscale CEO Michael Sonnenshein defended the fees, highlighting the trust’s position as the largest, most liquid, and oldest physical Bitcoin ETF on the market. On the other hand, new entrants have intensified competition by lowering fees to attract investors.
Invesco and Galaxy Digital moved early to attract new interest by cutting their management fees from 0.39% to 0.25% on January 30 last week.