BlackRock and Fidelity Bitcoin ETFs Among Top 10 for Net Asset Flows in January
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have achieved an impressive feat by landing in the top 10 for all ETFs by net asset flows in January, according to a report from Morningstar. Despite only being available to investors for 14 trading days, IBIT accounted for $2.7 billion in net asset flows, while FBTC accounted for $2.3 billion. It’s worth noting that BlackRock has a significant ETF business, with five other funds also in contention. Just a week after trading began, it was evident that both BlackRock and Fidelity’s ETFs were performing well compared to their competition.
Bitcoin ETF Performance Amidst Price Fluctuations
The performance of BlackRock and Fidelity’s Bitcoin ETFs is even more impressive considering the price fluctuations of BTC. On the day they started trading, BTC reached a high of $48,494.62 but dropped to $38,678.19 within two weeks. This decline can be attributed to the unlocking of previously locked-up shares and subsequent sell-off triggered by the conversion of Grayscale Bitcoin Trust (GBTC) to a spot ETF. In fact, GBTC experienced the second-largest outflow of any ETF in January, with $5.7 billion worth of shares being sold after its conversion.
The Role of Grayscale in Bitcoin ETF Approvals
Analysts speculate that if Grayscale had not filed a lawsuit against the SEC over its refusal to consider its ETF application and emerged victorious, none of the other Bitcoin ETFs would have been approved.
Hot Take: BlackRock and Fidelity’s Bitcoin ETFs Make Waves in January
Despite only being available for a short period, BlackRock and Fidelity’s Bitcoin ETFs have made a significant impact in January. Both ETFs secured spots in the top 10 for net asset flows, with BlackRock’s iShares Bitcoin Trust leading the way. The performance of these ETFs is even more impressive considering the price volatility experienced by BTC during the same period. However, the conversion of Grayscale Bitcoin Trust to a spot ETF had a negative impact on BTC’s price and caused significant outflows from Grayscale’s fund. Overall, the approval and success of these Bitcoin ETFs indicate a growing interest and demand for cryptocurrency investment options.
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