The heavyweight battle for crypto ETF supremacy is on. Just over one week since launching Bitcoin spot ETFs, Wall Street giants BlackRock and Fidelity have wasted no time accumulating staggering Bitcoin reserves.
TLDR
- BlackRock’s Bitcoin ETF (iBIT) took in another $260 million on its 7th day of trading, bringing its total to $1.69 billion
- Fidelity’s ETF kept pace at $158 million inflows on Monday, totaling $1.44 billion overall since launch
- Combined, BlackRock and Fidelity’s ETFs hold over 75,000 BTC worth over $2.6 billion
- Grayscale continued bleeding with $640 million in outflows on Monday, now totaling over $3.4 billion
- Experts predict continued BTC price volatility as ETF performance becomes tied to crypto’s maturity
Data reveals BlackRock’s iShares Bitcoin Trust ETF (iBIT) took in another $260 million on January 23rd, its 7th consecutive day of inflows totaling $1.69 billion. The ETF now holds over 33,400 BTC worth nearly $1.34 billion.
Fidelity trails closely with its Wise Origin Bitcoin Trust ETF taking in $158 million the same day, bringing its war chest to over 30,100 BTC valued at $1.26 billion.
The combined 75,500 BTC held by the twin financial titans’ ETFs equates to over $2.6 billion in value scooped up in barely a week. At Bitcoin’s current pace of 900 new BTC mined per day, BlackRock and Fidelity are acquiring years’ worth of new supply daily.
Bitcoin Spot ETFs Day 7 Flow
Flow data out for all prioviders. Total net outflow for day 7 is $87.5m. Third net outflow day so far.
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— BitMEX Research (@BitMEXResearch) January 23, 2024
Their meteoric rise has built on momentum gained when the SEC approved several spot Bitcoin ETFs after years of rejection. The new vehicles opened the crypto market to deeper Wall Street pockets by removing hassles of custody and security.
Other ETFs like Bitwise and Valkyrie recorded modest inflows of several thousand BTC, while crypto firm Grayscale endured another $640 million in outflows from its Bitcoin Trust. But none come close to the firepower BlackRock and Fidelity now wield.
The implications for Bitcoin’s future path carry intrigue. As ETFs buy up scarce BTC supply more aggressively, some analysts expect increased volatility tied to their performance.
Fidelity Executive Director Jurrien Timmer argues SEC approval marks major progress for crypto, but also introduces new instability as Wall Street and crypto become further intertwined.
If inflows waver and ETFs sell reserves en masse, BTC prices could suffer. For now however, BlackRock and Fidelity’s insatiable accumulation spree continues blazing forward.
