Blackrock, Fidelity Bitcoin ETFs Soar In January

Bitcoin ETFs attracted significant inflows totaling around $4.8 billion in January to BlackRock and Fidelity. They received the highest inflows.

During the month of January, the spot Bitcoin exchange-traded funds (ETFs) offered by BlackRock and Fidelity ranked among the Bitcoin ETFs that received the highest overall flows, which amounted to around $4.8 billion.

According to a report published on February 3 by Morningstar research analyst Lan Anh Tran, the Fidelity Wise Origin Bitcoin ETF (FBTC) ranked tenth with $2.2 billion in net flows.

The report relied on approximated data from the issuers’ websites. BlackRock’s iShares Bitcoin Trust (IBIT) had an estimated net flow of $2.6 billion, which placed it in eighth place.

According to information provided by YCharts, as of December 31, 2023, the United States of America is home to more than 3,100 Bitcoin exchange-traded funds (ETFs).

The statistics also revealed that the Grayscale Bitcoin Trust (GBTC) experienced the second biggest outflows among Bitcoin exchange-traded funds (ETFs) in the month of January. It is estimated that a total of $5.7 billion was left in the fund over the course of the month.

Nate Geraci, the president of the investment advisory firm Bitcoin ETF Store wrote an X post sharing the statistics. He said, “I never thought I’d see the day.”

He anticipated that the joint Bitcoin exchange-traded fund (ETF) operated by ARK Invest and 21 Shares, in addition to Bitwise’s, Bitcoin ETFs would reach one billion dollars in assets in the “not too distant future,” turning into a “strong middle class.” Both of these Bitcoin ETFs had assets under management that were approaching $650 million.

The revelation from Morningstar comes at a time when U.S. spot Bitcoin exchange-traded funds (ETFs) have seen six consecutive days of net positive inflows totaling approximately $715 million.

According to data posted on February 3 by Bitmex research, BlackRock and Fidelity’s funds carried the majority of these funds. In the trading days that spanned from January 26 to February 2, flows into the nine new spot Bitcoin funds were able to surpass the lingering outflows from GBTC that occurred throughout the week.

The exchange-traded fund (ETF) experienced its second-lowest outflow day on February 2, with a total of $144.6 million. The six-day streak of inflows followed a four-day frenzy of outflows that occurred between January 22 and January 25.

During that time period, GBTC outflows reached their highest point and a total of $431.8 million fled the 10 Bitcoin ETFs. In an article published on February 3rd, Eric Balchunas, a senior Bitcoin ETF analyst at Bloomberg, stated that it was “really something to see” the nine exchange-traded funds (ETFs), with the exception of the GBTC, “comeback from that dip last week.”

According to him, “typically, there is a slow decline after a big hyped launch,” and the fact that the funds saw net inflows during their third week of trading “shows that these exchange-traded funds have legs.”