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 trading days, based on data from Bloomberg ETF analyst Eric Balchunas.
IBIT and FBTC launched on January 11 and have consistently posted record-breaking numbers and generally outperformed the broader ETF market. The strong performance is evidence of Bitcoin's growing popularity in traditional financial circles.
49 day series
According to the data, IBIT accounted for more than half of BlackRock's net inflows this year, despite the company having a large portfolio of 420 ETFs. The Bitcoin fund has attracted twice as much capital as any other ETF offered by the company since its launch in January.
Likewise, FBTC accounted for 70% of Fidelity's YTD inflows and attracted five times more capital than any other ETF in the company's lineup. These numbers underscore 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 inflows for 49 consecutive days, a rare feat in the ETF market.
This success puts them in fourth place among active streaks, trailing only $COWZ and $CALF – which have seen uninterrupted inflows for over 100 days – and $SDVY.
The continued inflows into IBIT and FBTC indicate growing investor interest and confidence in these ETFs. Such consistent performance is exceptional as only 30 other ETFs have ever achieved a similar series of inflows, and none since inception as the two funds.
ETF hodler?
Recent discussions have focused on the behavior of ETF investors, particularly during market declines. Despite the belief that ETF investors retreat during downturns, actual market movements paint a different picture.
Balchunas questioned recent claims in the community that ETF investors lack expertise or resilience. He noted that the “Newborn Nine” had received a total of around $1.2 billion in the last five days, even as Bitcoin prices fell by 8%.
This inflow contradicts the notion of mass withdrawals from Bitcoin-related ETFs and suggests strategic investment decisions by ETF investors.
Balchunas further clarified that while there were outflows in $GBTC, these actions primarily affected Genesis strategic exchanges and did not indicate a broader lack of confidence among ETF investors.
In fact, these movements were largely neutral in their impact. He also pointed to historical data that shows the resilience of ETF investors. In 2008, ETFs saw $167 billion in inflows as the S&P 500 fell 35%.
ETFs also pulled in another $600 billion in 2021 despite an 18% decline in the S&P 500. These events highlight the strategic patience and confidence of ETF investors in various market conditions.
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