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 shared by Bloomberg ETF analyst Eric Balchunas.
IBIT and FBTC launched on January 11 and have consistently posted record numbers and generally outperformed the ETF market as a whole. This strong performance speaks to the growing popularity of Bitcoin in traditional financial circles.
49 consecutive days
According to the data, IBIT accounted for more than half of BlackRock's net inflows for the year, despite the firm's large portfolio of 420 ETFs. The Bitcoin fund has attracted double the capital of all other ETFs offered by the company since its launch in January.
Similarly, FBTC accounted for 70% of Fidelity's year-to-date flows, attracting 5x more capital than any other ETF in the company's lineup. These figures highlight the important role these ETFs play in attracting investor capital.
Balchunas also highlighted that the two spot Bitcoin ETFs also achieved a notable milestone by guaranteeing continuous cash inflows for 49 consecutive days, a rare achievement in the ETF market.
This achievement places them fourth among active streaks, behind $COWZ and $CALF – which have seen over 100 days of continuous inflows, and $SDVY.
Sustained inflows into IBIT and FBTC indicate growing investor interest and confidence in these ETFs. Such consistent performance is exceptional, with only 30 other ETFs having achieved a similar sequence of flows and none since launch as the two funds have.
ETF holders?
Recent discussions have focused on ETF investor behavior, particularly during market declines. Despite the perception that ETF investors pull back during economic downturns, actual market movements present a different picture.
Balchunas took issue with recent community claims that ETF investors lack sophistication or resilience. He noted that the Newborn Nine collectively received approximately $1.2 billion over the past five days, even as Bitcoin prices fell 8%.
This influx contradicts the idea of mass withdrawals from Bitcoin-related ETFs and indicates strategic investment choices by ETF investors.
Balchunas further clarified that while $GBTC experienced outflows, these actions primarily involved strategic Genesis trading and did not signify a broader lack of confidence among ETF investors.
In fact, these movements have had a largely neutral impact. He also highlighted historical data supporting the resilience of ETF investors. In 2008, ETFs attracted $167 billion in capital flows while the S&P 500 index was down 35%.
Similarly, in 2021, despite an 18% decline in the S&P 500, ETFs generated an additional $600 billion. These events highlight the strategic patience and confidence of ETF investors in various market conditions.