BlackRock and Fidelity are making their debut in the ETF market for the first time in 30 years.
In its first month, the BlackRock and Fidelity Bitcoin (BTC) ETF had the best debut in the ETF market in over 30 years.
Bloomberg analyst Eric Balchunas highlighted BlackRock and Fidelity’s IBIT and FBTC Spot Bitcoin ETFs, approved by the U.S. Securities and Exchange Commission (SEC) on January 10, 2024, as the best-performing ETF launches in the past 30 years.
In its first month of trading, the product attracted more assets than any other exchange-traded fund in the United States. However, analysts’ evaluations only consider ETFs that are available at the time of launch. We excluded all conversions, including approximately 100 conversions of mutual funds to ETFs and GBTC (while transferring existing assets).
He said that most of the GBTC outflows were made by FTX and prop traders, suggesting that the discount to other BTC ETFs was most likely unintentional. Balciunas believes the real invisible force here is competition.
“I think the real invisible force here is competition. “Ten ETFs launched on the same day with some stud issuers got everyone rushing and working on all fronts for inflows.”
Bloomberg analyst Eric Balchunas
At the end of January, BlackRock and Fidelity’s Bitcoin exchange-traded fund entered the top 10 largest U.S. ETFs by asset inflows. The amount amounts to $4.8 billion. Net inflows into iShares Bitcoin Trust this month were $2.6 billion, the eighth highest. Fidelity Wise Origin Bitcoin ETF ranked 10th with $2.2 billion. The Grayscale Bitcoin Trust ETF (GBTC) recorded the second-largest net outflow of $5.7 billion this month.