BlackRock and Fidelity Investment’s spot Bitcoin ETFs – IBIT and FBTC – have become the most popular funds currently offered by the two asset managers in less than 50 trading days, based on facts shared by Bloomberg ETF analyst Eric Balchunas.
IBIT and FBTC launched on January 11 and have consistently posted record numbers and generally outperformed the broader ETF market. The strong performance is a testament to Bitcoin’s growing popularity in traditional financial circles.
49-day streak
According to the data, IBIT represented more than half of BlackRock’s net inflows this year, despite the company’s large portfolio of 420 ETFs. The Bitcoin fund has attracted double the capital of any other ETF offered by the company since its launch in January.
Similarly, FBTC was responsible for 70% of Fidelity’s YTD flows, attracting 5x more capital than any other ETF in the company’s lineup. These numbers highlight the important 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 feat in the ETF market.
This performance puts them fourth among active series, behind only $COWZ and $CALF – which have seen more than 100 days of continuous inflows, and $SDVY.
The continued inflows into IBIT and FBTC indicate growing investor interest and confidence in these ETFs. Such consistent performance is exceptional: only 30 other ETFs have ever achieved similar inflows and none have achieved as much since their launch as the two funds.
ETF hodlers?
Recent discussions have focused on the behavior of ETF investors, especially during market dips. Despite the perception that ETF investors pull back during a recession, actual market movements show a different picture.
Balchunas disputed recent claims in the community that ETF investors lack sophistication or resilience. He noted that the newborn nine collectively approx $1.2 billion in the past five days, even as Bitcoin prices fell 8%.
These inflows contradict the idea of massive withdrawals from Bitcoin-related ETFs and indicate strategic investment choices by ETF investors.
Balchunas further clarified that while $GBTC saw outflows, these actions mainly related to strategic exchanges by Genesis and did not indicate a broader lack of confidence among ETF investors.
In fact, these moves had a largely neutral impact. He also pointed to historical data that supports the resilience of ETF investors. In 2008, ETFs attracted $167 billion in inflows as the S&P 500 fell 35%.
Similarly, despite an 18% decline in the S&P 500, ETFs pulled in another $600 billion in 2021. These events highlight the strategic patience and confidence of ETF investors under different market conditions.