BlackRock and Fidelity’s Bitcoin ETFs Break Records
BlackRock’s IBIT and Fidelity’s FBTC have achieved a significant milestone by accumulating over $3 billion in assets each within the first 17 trading days of their launch. This achievement surpasses any other ETF launched in the U.S. in the past 30 years. Bloomberg Intelligence data confirms that these Bitcoin exchange-traded funds are in a league of their own.
Impressive Performance Compared to Other ETFs
Most other ETFs on the list of top performers were “Bring Your Own Assets” (BYOA) ETFs, where one investor is responsible for all the assets under management (AUM). In contrast, BlackRock and Fidelity’s ETFs experienced consistent inflows since their launch, which is unprecedented.
Challenging GBTC in Liquidity Metrics
JPMorgan’s analysis reveals that BlackRock and Fidelity’s ETFs have gained an advantage over the Grayscale Bitcoin Trust (GBTC) in liquidity metrics. The Hui-Heubel ratio, a measure of market breadth, is significantly lower for BlackRock and Fidelity’s ETFs compared to GBTC, indicating greater market breadth. Additionally, the deviation of ETF closing prices from their net asset value (NAV) has improved for BlackRock and Fidelity’s ETFs, suggesting better liquidity compared to GBTC.
Hot Take: BlackRock and Fidelity Dominate with Record-Breaking Bitcoin ETFs
The success of BlackRock and Fidelity’s Bitcoin exchange-traded funds demonstrates the growing demand for cryptocurrency investment options. By amassing billions of dollars in assets within a month, these ETFs have proven their appeal to investors. Their ability to consistently attract inflows sets them apart from other ETFs and positions them as leaders in the industry. Furthermore, their performance in liquidity metrics indicates that they offer a more accessible and liquid investment option compared to the Grayscale Bitcoin Trust. As cryptocurrency continues to gain mainstream acceptance, BlackRock and Fidelity are well-positioned to capitalize on this trend with their innovative ETF offerings.
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