In January, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin ETF (FBTC) demonstrated remarkable performance, ranking eighth and 10th, respectively, among all ETFs with the largest flows, amassing a total of approximately $4.8 billion.
According to a Feb. 3 report by Morningstar research analyst Lan Anh Tran, sourced from issuer websites, BlackRock’s IBIT secured the eighth position with an estimated $2.6 billion in net flows, while Fidelity’s FBTC claimed the 10th spot with $2.2 billion in net flows.
As of December 31, 2023, the United States boasts over 3,100 ETFs, as per data from YCharts.
The data further revealed that the Grayscale Bitcoin Trust (GBTC) experienced the second-highest outflows among ETFs in January, with an estimated $5.7 billion exiting the fund during the month.
Nate Geraci, president of investment advisory firm ETF Store, expressed surprise in an X post sharing the data, stating, “Never thought I’d see the day.” He characterized BlackRock and Fidelity’s funds as engaged in a “clear two-horse race” among the nine new Bitcoin funds.
In another X post, Geraci highlighted the emergence of a “strong middle class” with the joint ETF from ARK Invest and 21 Shares, along with Bitwise’s funds, both having assets under management below $650 million. He predicted that these funds would likely surpass $1 billion in assets in the “not too distant future.”
Morningstar’s report coincides with U.S. spot Bitcoin ETFs experiencing six consecutive days of net positive inflows, totaling nearly $715 million. The lion’s share of these inflows was attributed to BlackRock and Fidelity’s funds, according to data posted on X by BitMEX Research on Feb. 3.
During the trading days from Jan. 26 to Feb. 2, the nine new spot Bitcoin funds saw inflows surpassing the lingering outflows from GBTC. Notably, on Feb. 2, GBTC experienced its second-lowest outflow day at $144.6 million.
Bloomberg senior ETF analyst Eric Balchunas remarked in a Feb. 3 X post that witnessing the nine ETFs, excluding GBTC, rebound from the dip was “really something to see.” He added that the net inflows during their third week of trading indicate that these ETFs have enduring popularity, contrary to the typical slow decline seen after a highly anticipated launch.
