Fidelity Bitcoin ETF Sets New Daily Inflow Record
The Fidelity Bitcoin ETF, Wise Origin Bitcoin Fund (FBTC), experienced its highest daily inflow on Monday, with $404.6 million of funds used to purchase more Bitcoin (BTC).
Compared to its previous strongest day on January 17, when it received $358 million in inflows, Monday’s inflow was significantly larger. The fund has consistently seen inflows since January 11, with most days not exceeding $200 million.
Impressive Numbers for Fidelity Bitcoin ETF
BitMEX Research reports that Fidelity has now received a total of $5.2 billion in flows and holds a BTC stash worth $7.49 billion.
[1/4] Bitcoin ETF Flow – 04 March 2024
All data in. Very strong day with +$562m net flow. Fidelity very strong with a record day
Not the best day for diversity, with smaller players BTCO, HODL & BTCW all having outflows pic.twitter.com/drCrg6EzsN
— BitMEX Research (@BitMEXResearch) March 5, 2024
Fidelity’s success was overshadowed by BlackRock’s iShares Bitcoin Trust (IBIT), which received $420.1 million in inflows on Monday. Together, the two funds had a combined net flow of $562.7 million, surpassing the sell pressure from the Grayscale Bitcoin Trust (GBTC) worth $368 million.
Since their launch on January 11, Bitcoin ETFs have accumulated over $50 billion in assets under management (AUM), including Grayscale’s holdings. The funds have seen net inflows of $7.9 billion, with the remaining gains coming from Bitcoin’s price appreciation.
Compared to the world’s first gold ETF, which took two years to attract $10 billion in inflows, the nine Bitcoin ETFs (excluding Grayscale) have received over $17 billion in net flows.
New All-Time Highs for Gold and Bitcoin
On Tuesday, the price of gold reached a new all-time high of $2,140 per ounce. Although Bitcoin briefly touched a new all-time high of $69,200, it has since dropped to $63,100 due to significant liquidations in the crypto market.
Bloomberg ETF analyst Eric Balchunas commented on Bitcoin’s record high, stating that it is not only a significant moment for the cryptocurrency but also for ETFs. He believes that the hype surrounding ETFs and the actual flows into these funds after their launch have been major factors in Bitcoin’s surge from $25,000 since June 2023.
According to Balchunas, ETFs are excellent at providing liquidity, affordability, convenience, and standardization for assets like Bitcoin. He believes that both ETFs and Bitcoin mutually benefit from each other’s presence in the market.
Hot Take: Fidelity Bitcoin ETF Breaks Records
In its strongest daily inflow since its launch, the Fidelity Bitcoin ETF attracted $404.6 million in funds used to purchase Bitcoin. This surpassed its previous record of $358 million and demonstrated the continuous interest in the fund.
Additionally, Fidelity’s total BTC stash is now worth $7.49 billion, further solidifying its position in the cryptocurrency market. However, BlackRock’s iShares Bitcoin Trust outperformed Fidelity on Monday, receiving $420.1 million in inflows.
The success of Bitcoin ETFs is evident as they have accumulated over $50 billion in AUM since January 11. With net inflows of $7.9 billion, these funds have become a significant player in the cryptocurrency investment space.
While Bitcoin reached a new all-time high before experiencing a drop, gold also hit a record high at $2,140 per ounce. This showcases the growing demand for both traditional and digital assets.
As ETFs continue to provide liquidity and accessibility to assets like Bitcoin, they contribute to the overall growth and adoption of cryptocurrencies. The relationship between ETFs and Bitcoin is mutually beneficial, creating opportunities for investors and driving innovation in the financial industry.
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