The Fidelity Bitcoin Spot ETF (FBTC) has ascended to become the world’s third-largest Bitcoin ETF in terms of assets under management (AUM). This news broke courtesy of Vetle Lunde, senior analyst at K33 Research, whose post on the X platform paints a comprehensive picture of the state of Bitcoin spot ETFs in the United States.
The landscape of Bitcoin spot ETFs witnessed mixed signals on January 23rd, as total net outflows reached $105 million. While the behemoth Grayscale Bitcoin Trust (GBTC) shouldered the bulk of this with a $515 million net outflow, other smaller spot ETFs collectively saw inflows totaling $410 million. This highlights the evolving dynamics within the Bitcoin ETF space, with newer entrants attracting interest despite broader market pressures.
Excerpt: Blockchain analytics firm Arkham Intelligence has identified the on-chain addresses associated with Bitcoin exchange-traded funds (ETFs) managed by financial giants BlackRock, Fidelity, Bitwise, and Franklin Templeton. This groundbreaking discovery offers unprecedented transparency into the institutional adoption of Bitcoin and sheds light on the specific holdings of these major players.
The Shark Tank star and chairman of O’Shares ETFs explained his reasons for avoiding the newly approved spot Bitcoin ETFs, which invest directly in the cryptocurrency. He said he prefers to own Bitcoin directly and avoid paying extra fees to the fund managers. He also predicted that Fidelity and BlackRock, two of the largest asset managers in the world, will dominate the Bitcoin ETF market because of their established distribution channels and trust among investors.
Bitcoin exploded out of the gate with a $400 million stampede into spot ETFs on its first day, led by Fidelity’s $227 million charge. This early data hints at a potential gold rush for direct Bitcoin exposure, fueled by institutional giants like BlackRock joining the fray. While the final figures may shift, one thing’s clear: Bitcoin’s mainstream embrace has begun, and the stampede has only just started.
The U.S. Securities and Exchange Commission is expected to rule on eight applications for Bitcoin spot exchange-traded funds by January 11, 2024. The applicants include some of the biggest names in the ETF industry, such as BlackRock, Fidelity, and Invesco.