- BlackRock and Fidelity’s Bitcoin ETFs set a new U.S. record with over $3 billion assets each in debut month.
- Bitcoin surpasses $45,000, marking significant price movement since spot ETFs trading began.
In an unprecedented surge within the financial markets, BlackRock and Fidelity have made a groundbreaking entry into the cryptocurrency space with their spot Bitcoin exchange-traded funds (ETFs), IBIT and FBTC, respectively.
Within the first 17 trading days of their launch, each fund has managed to amass over $3 billion in assets, setting a new record for the most assets accrued by any ETF in the United States in their debut month over the last three decades.
This remarkable achievement places these two ETFs in a league of their own, overshadowing a list of more than 5,500 ETFs, according to data from Bloomberg Intelligence.
Record-Breaking ETF Launches
The previous record-holder for the highest assets under management (AUM) in the debut month was BlackRock’s iShares Climate Conscious & Transition MSCI USA ETF, which launched on June 8, 2023, with $2.2 billion. However, the success of IBIT and FBTC is particularly noteworthy.
Unlike many ETFs that rely on a “Bring Your Own Assets” (BYOA) model—where a significant initial investment comes from a single source—BlackRock and Fidelity’s offerings have seen consistent inflows every trading day since their inception.
Bloomberg ETF analyst Eric Balchunas described this phenomenon as “literally unprecedented,” highlighting the broad-based investor appeal and confidence in these products.
Moreover, the crypto-focused ETF landscape has seen additional contenders making it to the top ranks. The ARK 21Shares’s spot Bitcoin ETF (ARKB) and Bitwise (BITB) spot Bitcoin ETF have also secured their positions within the top 25, ranking 20th and 22nd, respectively.
This is a testament to the growing interest and investment in cryptocurrency-based financial products, despite the volatile nature of digital currencies.
Here's a look at the Top 25 ETFs by assets after 1 month on the market (out of 5,535 total launches in 30yrs). $IBIT and $FBTC in league of own w/ over $3b each and they still have two days to go. $ARKB and $BITB also made list. pic.twitter.com/Yyi1nxukUk
— Eric Balchunas (@EricBalchunas) February 8, 2024
In his analysis, Balchunas pointed out that the Bloomberg Intelligence data had filtered out ETFs that underwent a conversion process, such as Grayscale’s GBTC, and about 100 mutual funds that transitioned to ETFs. This ensures that the comparison remains with new ETF launches, further underscoring the impressive performance of IBIT and FBTC.
Despite significant outflows from Grayscale’s Bitcoin ETF, which Balchunas acknowledged as a factor in the flow performance, the allure and success of BlackRock and Fidelity’s spot Bitcoin ETFs stand out as a significant market development. He said:
“I think the real unseen force here is competition. 10 ETFs launching on same day w/ some stud issuers just made everyone hustle their ass off.”
Bitcoin’s Market Performance
In parallel to the ETF market’s developments, Bitcoin itself has experienced notable price movements. For the first time since the day after the spot ETFs began trading on January 11, Bitcoin’s price has soared above the $45,000 mark.
This price surge has implications for early investors in the Bitcoin ETF, bringing them close to breaking even, with potential for profit if the ascent continues. Laurent Ksiss, a crypto ETP specialist at CEC Capital, suggested that this could trigger a reversal, possibly testing the $42,000/$40,000 level.
However, there’s an optimistic outlook from LMAX Digital, predicting that Bitcoin could climb higher, possibly reaching the $50,000 mark. This is attributed to a technical breakout from its previous range, signaling a push to a fresh yearly high.
At the time of writing, BTC was trading at $46,270.42, marking a 3.94% increase over the past 24 hours and modestly outperforming the 4.6% rise of the broader CoinDesk 20 Index.