Fidelity’s Bitcoin Spot ETF Sees $1 Billion Inflows
Fidelity has joined BlackRock as one of the few asset managers to achieve over $1 billion in inflows for their Bitcoin spot ETF. According to BitMEX Research, Fidelity’s FBTC received $177.9 million in inflows on January 18, bringing its total inflows to $1.1 billion within just five days of trading. This puts Fidelity in the same league as BlackRock’s IBIT, which has seen $1.2 billion in total inflows. Together, these two investment funds account for more than two-thirds of the $3.4 billion inflows recorded in the Bitcoin spot ETF market so far.
Positive Performances from Other Bitcoin Spot ETFs
Bitwise’s BITB, Ark Invest’s ARKB, and Invesco’s BTCO have also experienced notable positive performances. BITB has seen total inflows of $395.5 million, ARKB has seen $320.9 million, and BTCO has seen $194.8 million in individual inflows.
Grayscale’s GBTC Continues to Bleed
While Fidelity and BlackRock enjoy significant inflows, Grayscale’s GBTC is experiencing massive outflows. On January 18 alone, GBTC recorded an outflow of $579.6 million, resulting in a net outflow of $131.6 million for the Bitcoin spot ETF market overall. GBTC’s total outflows now amount to $2.1 billion.
Bitcoin Price Decline Attributed to GBTC Outflows
The approval of the BTC spot ETF did not lead to the expected price surge for Bitcoin. Instead, it experienced a decline over the past two weeks, which many analysts believe is due to the selling pressure caused by GBTC’s outflows. At the time of writing, Bitcoin is trading at $41,536, with a decline of 2.55% and 5.50% in the last seven and 14 days, respectively.
Hot Take: Will Inflows from Fidelity and BlackRock Drive Bitcoin’s Recovery?
The inflows into Fidelity and BlackRock’s Bitcoin spot ETFs have dominated the market, while Grayscale’s GBTC continues to bleed. With over $1 billion in inflows each, Fidelity and BlackRock are leading the pack. However, it remains to be seen whether these inflows will be enough to drive a significant recovery for Bitcoin or if the selling pressure from GBTC will continue to outweigh the positive momentum.
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