Crypto
BlackRock and Fidelity's spot bitcoin ETFs outperform Grayscale with over $14 billion in inflows, driving Bitcoin to record highs.
By Bill Bullington
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BlackRock and Fidelity have seen significant inflows into their exchange-traded funds tracking spot bitcoin prices, surpassing the outflows from Grayscale's bitcoin ETF, as per Deutsche Bank Research. Jim Reid from Deutsche Bank notes that Bitcoin is increasingly institutionalized, regardless of one's stance on its valuation.
Since the launch of spot bitcoin ETFs in January, BlackRock's iShares Bitcoin Trust IBIT has attracted over $9 billion in inflows, followed by Fidelity's Wise Origin Bitcoin Fund FBTC with more than $5 billion. In contrast, the Grayscale Bitcoin Trust ETF GBTC has experienced $9.5 billion in outflows during the same period.
Grayscale's Bitcoin Trust ETF has an expense ratio of 1.5%, costing $15 annually for every $1,000 invested. In comparison, BlackRock's iShares Bitcoin Trust has a lower fee of 0.25%, with a temporary waiver reducing it to 0.12% for the first $5 billion in assets. Fidelity's Bitcoin ETF also has a 0.25% fee, currently waived until July 31.
Spot bitcoin ETFs have surged post-listing, with the iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, and ARK 21Shares Bitcoin ETF all showing significant gains. Bitcoin prices hit an intraday record high of around $69,000 earlier this week, driven by the SEC's approval of spot bitcoin ETFs on Jan. 10.
"Whether you’re a cynic or a convert, whether you think it’s cheap or in a bubble, what’s clear is that Bitcoin is becoming increasingly institutionalised."
Finance GPT
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