ETFs
Here’s How Much Spot Bitcoin ETFs Contributed to BlackRock and Fidelity’s Inflows in 2024
BlackRock and Fidelity’s spot Bitcoin exchange-traded funds (ETFs) have become major contributors to overall corporate ETF flows this year.
According to data from Bloomberg Intelligence, these Bitcoin ETFs have accounted for 26% and 56% of BlackRock and Fidelity inflows, respectively, since the start of the year.
Spotting Bitcoin ETF Data
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have collectively attracted substantial investment since their launch nearly five months ago.
According to Farside Investor data, IBIT recorded inflows of $16.6 billion, and FBTC received $8.9 billion. Despite these numbers, Vanguard, which does not offer any spot Bitcoin ETFs, remains the leader in total ETF inflows for 2024, amassing $102.8 billion, surpassing BlackRock’s $65.1 billion.
BlackRock remains the largest ETF provider in the US stock market, with 433 ETFs listed and $2.8 trillion in assets under management, while Fidelity is holding the 11th position with 70 ETFs and $74.04 billion in assets.
In recent weeks, the flow of investments into these products has stagnated, with many issuers experiencing days of no inflows and outflows. For example, the Franklin Bitcoin ETF (EZBC) has not reported any activity since May 16, according to Farside Investors.
Despite this, the overall spot Bitcoin ETF market hit a milestone on May 24, with all ETFs collectively holding over 1 million BTC, most of which is allocated to US products among the 32 ETFs available.
BlackRock’s IBIT surpassed Grayscale’s GBTC
Meanwhile, BlackRock’s IBIT recently exceeds The Grayscale Bitcoin Trust (GBTC) became the world’s largest Bitcoin ETF on May 28. According to Apollo Bitcoin TRACKER, IBIT now holds 291,567 BTC, valued at over $20 billion at current prices.
Grayscale, which initially led the market with 620,000 BTC, has seen significant outflows and currently holds 285,139 BTC, worth approximately $19.6 billion.
According to CFRA’s Aniket Ullal, BlackRock’s growing dominance in the Bitcoin ETF spot market shows that being a pioneer does not guarantee long-term success.
Early players like Grayscale have faced challenges such as selling pressure and high fees of 1.5%, compared to around 0.25% charged by newer rivals like Fidelity and ARK Investments. Nate Geraci of the ETF Store pointed out that Grayscale’s high fees deter advisors and investors.
Ullal also noted that BlackRock’s success is partly due to its strong distribution network among financial advisors and wealth managers.