Spot Bitcoin exchange-traded funds (ETFs) have become the most popular investment vehicle for BlackRock and Fidelity, even though they have only been trading for less than 50 days. Bloomberg Analyst Erich Balchunas took to X (formerly Twitter) Share some fascinating facts about these two products.
Balchunas explains that more than 50% of the flows in their Bitcoin ETFs are from asset managers IBIT & FBTC. The investment products, which were launched on 11th January after receiving regulatory approvals, have seen a rapid growth in the short time they’ve been around.
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BlackRock and Fidelity are proving to be the most popular fund for Spot Bitcoin.
After the US Securities and Exchange Commission’s (SEC) approval for Spot Bitcoin Exchange-Traded Funds, digital assets received massive mainstream attention at the start of the year 2024. Bitcoin’s ascent to its $73,000 record-breaking price in this month is proof that these products boosted Bitcoin to a new stratosphere.
The popularity of the Bitcoin asset has been mutually beneficial both for it and its issuers. Data shows that the Spot Bitcoin funds are BlackRock’s and Fidelity’s top investment funds. Bloomberg’s Balchunas recently discussed the growing popularity of these ETFs in his blog.
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Balchunas was noted as being “pretty wild” BlackRock IBIT is responsible for over half of the net flow on the entire year. He noted, in addition, that this product had gained a lot of traction. “taken in double an of their other 420 ETFs.” Fidelity FBTC’s FBTC reports a larger impact.
Balchunas reports that BTC ETFs are now available through Balchunas. “70% of Fidelity’s YTD [year-to-date] flows and 5x more than any other of their ETFs.” Bitcoin is a popular investment for all of these asset managers.
It is not surprising that this is the case, but it’s understandable given the rapid pace at which the products have grown since they were approved. Balchunas had noted in an earlier post that BlackRock and Fidelity both have “taken cash for 49 straight days, something only 30 other ETFs have ever done” Although none did so to begin their existence,
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Source: watcher.guru