TL;DR
- BlackRock’s IBIT attracts $224 million in less than three weeks, ranking among the top five ETFs for 2024 inflows.
- IBIT offers low fees and high returns for investors seeking exposure to Bitcoin as a credible asset class.
- IBIT and Fidelity’s FBTC outperform other spot Bitcoin ETFs, while Grayscale’s converted fund sees reduced outflows.
BlackRock’s iShares Bitcoin Trust (IBIT) has attracted a significant inflow of $224 million, distinguishing itself in the rapidly evolving spot Bitcoin ETF sector. Despite being launched merely 17 days ago, IBIT has swiftly climbed to the top echelons of the exchange-traded funds (ETFs) market, ranking among the top five for 2024 inflows.
This accomplishment highlights the increasing interest of investors in Bitcoin as a credible asset class within diverse investment portfolios. Eric Balchunas, a senior ETF analyst at Bloomberg, observed that IBIT has drawn more capital than 99.98% of ETFs, an extraordinary achievement for a fund that is just over two weeks old.
A portion of this investment surge can be linked to a strategic shift among asset managers. For example, Redwood, a Canadian asset manager, transitioned from the Canadian Purpose Bitcoin ETF, which had fees exceeding 1%, to the more affordable IBIT. IBIT offers free management for the first $5 billion in assets and a modest fee of 25 basis points thereafter.
IBIT has accumulated $3.2 billion in inflows, surpassed only by prominent index ETFs like the iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF (VOO), which serve traditional equity markets. This positions IBIT not only within the elite of cryptocurrency funds but also across the wider ETF market.
How BlackRock’s IBIT and Fidelity’s FBTC Compare with Other Spot Bitcoin ETFs
Fidelity’s Wise Origin Bitcoin Fund (FBTC) also features in the top 10 ETF asset gatherers this year, securing the eighth position with $2.7 billion in inflows. However, despite the strong start for these Bitcoin-focused funds, the overall investment rate into new spot Bitcoin ETFs appears to be slowing.
Nevertheless, BlackRock’s IBIT and Fidelity’s FBTC stand out as the only funds among their peers to have sustained a consistent positive flow of investment since their market introduction. The performance of BlackRock’s ETF is particularly remarkable, with Balchunas from Bloomberg reporting a top 0.02% placement against an estimated 10,000 ETFs globally, demonstrating the strong demand for cryptocurrency investment products.
The competitive dynamics among spot Bitcoin ETFs are becoming increasingly apparent, with ARK 21shares and Bitwise lagging behind BlackRock and Fidelity in terms of accumulated flows. Concurrently, Grayscale’s converted spot Bitcoin ETF is witnessing a gradual decrease in outflows, indicating a potential market stabilization.
