Spot Bitcoin ETFs IBIT and FBTC Among Top 20 by Flows
Spot Bitcoin (BTC) exchange-traded funds (ETF) IBIT and FBTC have secured spots among the top 20 by flows in 2024. According to Bloomberg ETF analyst Eric Balchunas, these ETFs have amassed $49 billion in total flows, representing 4.3% of the overall flows.
IBIT Dominates with Third-Largest Inflow
BlackRock’s IBIT has registered the third-largest inflow last year, attracting over $37 billion in capital to the US-traded Bitcoin ETF. IBIT’s assets under management (AUM) stand at approximately $52 billion, outperforming other ETFs in the top 20.
Competition from Traditional ETFs
IBIT faced competition from two other traditional ETFs linked to the S&P 500. The iShares Core S&P 500 ETF (IVV) saw nearly $87 billion in flows, while Vanguard S&P 500 ETF (VOO) surpassed $116 billion in inflows, overshadowing IBIT’s performance.
FBTC Secures 14th Place
Fidelity’s FBTC claimed the 14th spot with $11.8 billion in yearly flows. However, its AUM is lower compared to IBIT, standing at around $19 billion.
ETF Market Overview
The ETF market saw a total of $1.14 trillion in flows, with FBTC and IBIT combined accounting for 4.3% of the total. Notably, both funds have less than a year since their launch.
Bitcoin ETFs Surpass Gold
US-traded Bitcoin ETFs, including spot, derivatives, and leverage, surpassed gold ETFs’ total AUM in mid-December, marking a significant milestone in the industry.
Gearing up for Growth
President-elect Donald Trump’s positive stance on crypto, reflected in favorable regulatory nominations, has instilled optimism in the industry. Analysts project significant growth in Bitcoin ETFs, with estimates suggesting $35 billion will flow into these assets this year, reaching over $70 billion in inflows within two years of launch.
Balchunas and Seyffart anticipate new ETF approvals this year, driven by a friendlier regulatory environment in the US. Despite the market pressure, industry giants like VOO may still dominate the ETF space.
Adam Back from Blockstream questioned the potential for a spot Bitcoin ETF to lead in inflows this year, highlighting the challenges faced by newcomers like IBIT against established players like VOO.
Nevertheless, the achievement of two spot Bitcoin ETFs ranking among the top 20 in their debut year is a significant milestone for these products.
