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BlackRock & Fidelity Bitcoin ETFs Prove Most Popular Beating USD Bond Funds in January 

Last Updated February 5, 2024 5:52 PM
James Morales
Last Updated February 5, 2024 5:52 PM

Key Takeaways

  • In January, Blackrock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) attracted billions of dollars of inflows.
  • The 2 spot Bitcoin funds were among the 10 most popular US-listed ETFs in January.
  • Both IBIT and FBTC outperformed money market funds and rivaled some of the most dominant equity funds.

Less than a month has passed since the first spot Bitcoin Exchange-Traded Funds (ETFs) were listed in the US, yet the most popular have already amassed billions of dollars worth of investment each. 

Although they still have a way to go before they catch up with Grayscale’s GBTC, Blackrock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have risen to the top of the table in terms of inflows, raking in a over $5 billion between them at a time when GBTC has been hemorrhaging capital.

Blackrock and Fidelity Closing in On Grayscale

At the close of trading on Friday, February 2, IBIT’s net assets value (NAV) stood at $3.12 billion , having attracted more investment than any of its peers in January. Meanwhile, FBTC had a NAV of $2.66 billion, more than triple that of its closest competitor – Ark Invest and 21Shares’ ARKB, which trailed behind in third place.

As things stand, Grayscale’s Bitcoin ETF remains the largest, holding Bitcoin worth $20.39 billion. But whereas 9 new spot Bitcoin ETFs pulled in significant investment in January, GBTC has witnessed cumulative outflows of nearly $6 billion.

Despite massive outflows from GBTC, these are more than balanced out by capital that has flowed into other funds. 

Overall, spot Bitcoin ETFs have attracted net inflows of around $1.58 billion. In fact, IBIT and FBTC emerged as 2 of the most popular ETFs in January, joining a top ten list that has traditionally been dominated by funds that invest in the US government bonds and blue chip American stocks. 

Bitcoin Funds Among 10 Most Popular US-Listed ETFs

In a normal month, the 10 ETFs with the most inflows consist mostly of index funds that track the US stock market, with a handful of USD money market funds also in the mix. However, as Bitcoin funds made their debut in January, Morningstar data shows that only 1 bond-focused ETF made the top 10.

Bitcoin Dominance Undisputed?

Does that mean crypto now rivals Treasuries as the ETF market’s second-favorite asset class after equities? Not quite. The combined value of all Bitcoin funds is still dwarfed by the largest money market funds, which each hold bills, notes and bonds worth hundreds of billions of dollars. 

Nevertheless, the significance of Bitcoin in global financial markets is now undisputed. If IBIT and FBTC sustain their current rate of investment, within 5 years they will rival the largest ETFs in existence today.

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