Sunday, June 16, 2024

BlackRock and Fidelity mark their most successful entrance into the ETF market in the past 30 years

BlackRock and Fidelity’s Bitcoin (BTC) ETFs made a remarkable entrance into the ETF market, marking the best debut in the past 30 years during their first month.

Bloomberg analyst Eric Balchunas highlights the success of BlackRock’s IBIT and Fidelity’s FBTC spot Bitcoin ETFs, which received approval from the U.S. Securities and Exchange Commission (SEC) on Jan. 10, 2024. These ETFs attracted more assets in their initial month of trading than any other exchange-traded fund in the United States. However, Balchunas’ assessment only considers ETFs that were introduced at the time of launch, excluding conversions such as about 100 mutual funds to ETFs and GBTCs with pre-existing assets.

Balchunas noted that most of the outflow from GBTC was due to FTX and proprietary traders, suggesting a discount likely not intended for another BTC ETF. He believes that the significant competition among the 10 ETFs launched on the same day, with reputable issuers, drove everyone to work hard and explore every possible angle to attract inflows.

By the end of January, Bitcoin exchange-traded funds from BlackRock and Fidelity had entered the top ten largest American ETFs by asset inflows, totaling $4.8 billion between them. The iShares Bitcoin Trust saw a net inflow of $2.6 billion, ranking eighth, while Fidelity Wise Origin Bitcoin ETF secured tenth place with $2.2 billion. On the other hand, Grayscale Bitcoin Trust ETF (GBTC) experienced the second-largest net outflow for the month, totaling $5.7 billion.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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