Investor interest in Bitcoin exchange-traded funds (ETFs) has surged in 2023, particularly after their approval on January 10, 2024. Notably, BlackRock and Fidelity have been at the forefront with their Bitcoin ETFs, attracting significant inflows and contributing substantially to this year's total ETF investments.

Key ETF Inflows

Analysis by Bloomberg ETF analyst Eric Balchunas indicates that BlackRock and Fidelity's Bitcoin ETFs have accounted for a substantial portion of the total inflows, with 26% and 56% respectively. Data from Farside Investor reveals that BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) have attracted substantial inflows of $16.6 billion and $8.9 billion since January.

Comparison with Other Industry Giants

In comparison, Vanguard, although not offering Bitcoin ETFs, has reported total ETF inflows of $102.8 billion in 2024, surpassing BlackRock's $65.1 billion. BlackRock manages 429 ETFs amounting to $2.8 trillion, while Fidelity oversees 70 ETFs valued at $74 billion in assets under management (AUM). Invesco reported $34.7 billion in ETF flows this year, with a meager 0.9% originating from Bitcoin ETFs, totaling $317.3 million in the first five months.

Insights for Investors

• BlackRock's IBIT ETF seized the title of the largest spot Bitcoin ETF globally on May 28, surpassing Grayscale Bitcoin Trust (GBTC). IBIT now holds 291,567 BTC valued at over $20 billion, while GBTC's holdings have decreased to 285,139 BTC worth $19.6 billion.
• Recent trends suggest a balance in Bitcoin ETF inflows and outflows, with some providers encountering periods of zero net flows.

The recent stability in Bitcoin ETF flows indicates a calmer market landscape. Grayscale's daily inflows average $141.7 million, driven mainly by BlackRock's IBIT, Fidelity's FBTC, and ARK 21Shares Bitcoin ETF (ARKB).