Bitcoin ETFs Surge with $700M Inflows: BlackRock and Fidelity Lead the Way
Bitcoin ETFs have witnessed substantial growth, with a $700 million inflow in the past week, indicating strong investor confidence. BlackRock and Fidelity are at the forefront of this surge, capturing significant market share and influencing the digital asset landscape. In the latest Digital Asset Fund Flows Weekly Report, a notable surge in investment was observed [...]
- Bitcoin ETFs have witnessed substantial growth, with a $700 million inflow in the past week, indicating strong investor confidence.
- BlackRock and Fidelity are at the forefront of this surge, capturing significant market share and influencing the digital asset landscape.
In the latest Digital Asset Fund Flows Weekly Report, a notable surge in investment was observed with inflows reaching $708 million in the past week. This uptick has reduced the outflows from Grayscale, contributing to a robust year-to-date inflow of $1.6 billion, and escalating the total global assets under management to $53 billion.
CoinShares data highlights a remarkable trend in the US ETF market, with new ETFs averaging $1.9 billion in inflows over the past four weeks, cumulatively amassing $7.7 billion since their inception. See below.
Leading the Charge: BlackRock and Fidelity’s Impact
Prominent ETFs, particularly those managed by financial giants BlackRock and Fidelity, reported weekly inflows of $884 million and $674 million, respectively. In contrast, the Grayscale Bitcoin Trust (GBTC) saw a significant decrease in outflows, dropping from $2.2 billion the previous week to $927 million.
This shift underscores a pivotal moment for new Bitcoin ETFs, which have now accrued $7.7 billion in assets, surpassing the $6 billion in outflows from traditional funds.
Further insights were provided by an analyst’s tweet, indicating a notable decrease in Grayscale Bitcoin Holdings from 619,000 BTC in January 2024 to 478,000 BTC. This shift has largely benefited BlackRock and Fidelity, with BlackRock’s Bitcoin holdings now valued at $3.2 billion.
GRAYSCALE #Bitcoin Holding started Jan 2024 at 619.000 $BTCNow sitting at 478.000 BTC. The majority outflow has been soaked up by Blackrock and Fidelity!
Blackrock now holds 3.2 Billion USD in BTC!
If they keep on going like this, there won't be any Bitcoin… pic.twitter.com/nhiFIwsLzt
— Seth (@seth_fin) February 5, 2024
This aggressive acquisition strategy by BlackRock suggests a shrinking availability of Bitcoin for other investors. Moreover, James Seyffart of Bloomberg provided an update on the Bitcoin ETF Cointucky Derby, highlighting a $80 million inflow on Friday.
Update for the #Bitcoin ETF Cointucky Derby. Flows from Friday were +$80 million. $GBTC leading the volume today. pic.twitter.com/Lqz7gRCRTx
— James Seyffart (@JSeyff) February 5, 2024
Fidelity’s Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) have experienced significant inflows, with FBTC’s total flows at $2,600.1 million and IBIT at $3,059.9 million. In contrast, GBTC saw a decline until Thursday, with total flows over the last 16 days showing a negative $5,967.9 million.
As recently reported by CNF, Bitcoin market has demonstrated resilience, maintaining its value around $42,953, despite experiencing a 0.57% decrease in the last 24 hours and a 0.95% drop over the past week.
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