According to CryptoPotato, Bitcoin exchange-traded funds (ETFs) from BlackRock and Fidelity have played a significant role in the companies' overall ETF inflows this year. Data from Bloomberg Intelligence reveals that these Bitcoin ETFs have accounted for 26% and 56% of BlackRock and Fidelity's year-to-date inflows, respectively. BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) have collectively attracted substantial investments since their launch nearly five months ago. Farside Investor data shows that IBIT has seen $16.6 billion in inflows, while FBTC has received $8.9 billion.
Despite these figures, Vanguard, which does not offer any spot Bitcoin ETFs, remains the leader in total ETF inflows for 2024, amassing $102.8 billion, surpassing BlackRock's $65.1 billion. BlackRock continues to be the largest ETF provider in the U.S. stock market, with 433 ETFs listed and $2.8 trillion in assets under management. Fidelity holds the 11th position with 70 ETFs and $74.04 billion in assets. However, the flow of investments into these products has plateaued in recent weeks, with many issuers experiencing days of zero inflows and outflows.
The overall market for spot Bitcoin ETFs hit a milestone on May 24, with all ETFs collectively holding over one million BTC, most of which is allocated to U.S. products among the 32 available ETFs. BlackRock's IBIT recently surpassed the Grayscale Bitcoin Trust (GBTC) as the world's largest spot Bitcoin ETF on May 28. According to the Apollo Bitcoin TRACKER, IBIT now holds 291,567 BTC, valued at over $20 billion at current prices. Grayscale, which initially led the market with 620,000 BTC, has seen substantial outflows and currently holds 285,139 BTC, worth approximately $19.6 billion.
BlackRock's increasing dominance in the spot Bitcoin ETF market indicates that being a first mover doesn't guarantee long-term success. Early players like Grayscale faced challenges such as selling pressure and high fees of 1.5%, compared to about 0.25% charged by newer competitors like Fidelity and ARK Investments. BlackRock's success is partly due to its strong distribution network among financial advisors and wealth managers.
