Bitcoin ETFs become hottest product in BlackRock, Fidelity’s repertoire of funds

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Black­Rock and Fideli­ty Investment’s spot Bit­coin ETFs — IBIT and FBTC — have become the most pop­u­lar funds the two asset man­agers cur­rent­ly offer in less than 50 days of trad­ing, based on data shared by Bloomberg ETF ana­lyst Eric Balchunas.

IBIT and FBTC were launched on Jan. 11 and have con­sis­tent­ly post­ed record-set­ting num­bers and gen­er­al­ly out­per­formed the wider ETF mar­ket. The strong per­for­mance is evi­dence of Bitcoin’s grow­ing pop­u­lar­i­ty in tra­di­tion­al finan­cial circles.

49-day streak

Accord­ing to the data, IBIT made up more than half of BlackRock’s net inflows for the year despite the company’s large port­fo­lio of 420 ETFs. The Bit­coin fund has attract­ed dou­ble the cap­i­tal of every oth­er ETF offered by the com­pa­ny since its launch in January.

Sim­i­lar­ly, FBTC account­ed for 70% of Fidelity’s YTD flows, attract­ing 5x more cap­i­tal than any oth­er ETF in the company’s line­up. These fig­ures high­light the sig­nif­i­cant role these ETFs play in attract­ing investor capital.

Balchu­nas also high­light­ed that the two spot Bit­coin ETFs have also achieved a notable mile­stone by secur­ing con­tin­u­ous cash inflows for 49 con­sec­u­tive days, a rare achieve­ment in the ETF market.

This achieve­ment places them fourth among active streaks, trail­ing only behind $COWZ and $CALF — which have seen over 100 days of con­tin­u­ous inflows, and $SDVY.

The sus­tained inflows into IBIT and FBTC indi­cate grow­ing investor inter­est and con­fi­dence in these ETFs. Such con­sis­tent per­for­mance is excep­tion­al, with only 30 oth­er ETFs ever hav­ing achieved a sim­i­lar streak of inflows and none from their launch like the two funds have.

ETF hodlers?

Recent dis­cus­sions have focused on ETF investor behav­ior, espe­cial­ly dur­ing mar­ket dips. Despite per­cep­tions of ETF investors with­draw­ing dur­ing down­turns, the actu­al move­ments in the mar­ket present a dif­fer­ent picture.

Balchu­nas chal­lenged recent asser­tions in the com­mu­ni­ty that ETF investors lack sophis­ti­ca­tion or resilience. He not­ed that the New­born Nine col­lec­tive­ly received about $1.2 bil­lion over the past five days, even as Bit­coin prices fell by 8%.

This inflow con­tra­dicts the idea of mass with­drawals from Bit­coin-relat­ed ETFs and indi­cates strate­gic invest­ment choic­es by ETF investors.

Balchu­nas fur­ther clar­i­fied that while $GBTC expe­ri­enced out­flows, these actions pri­mar­i­ly involved strate­gic exchanges by Gen­e­sis and did not sig­ni­fy a broad­er lack of con­fi­dence among ETF investors.

In fact, these move­ments were large­ly neu­tral in impact. He also point­ed to his­tor­i­cal data sup­port­ing the resilience of ETF investors. In 2008, ETFs attract­ed $167 bil­lion in inflows when the S&P 500 was down by 35%.

Sim­i­lar­ly, in 2021, despite an 18% drop in the S&P 500, ETFs drew anoth­er $600 bil­lion. These events high­light the strate­gic patience and con­fi­dence of ETF investors across var­i­ous mar­ket conditions.

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