Fidelity's FBTC Emerges as a Strong Contender Amid Bitcoin ETF Outflows
On April 8, US spot Bitcoin ETFs experienced their most significant outflows since March 20, with funds collectively witnessing a $223.8 million outflow.
Despite this setback, Fidelity’s FBTC spot Bitcoin ETF, launched just three months ago, has emerged as a frontrunner in the US spot Bitcoin ETF landscape.
FBTC 0.00%↑ has surpassed a remarkable 150,000 BTC in assets under management (AUM), highlighting the growing institutional demand for Bitcoin. This rapid growth stands in stark contrast to the decline experienced by established players like the Grayscale Bitcoin Trust (GBTC), which has seen its AUM drop by nearly 48% since January.
The combined AUM of all US-based Bitcoin exchange-traded funds now stands at an impressive 842,897 BTC, representing over 4% of the total circulating supply of Bitcoin. This surge in AUM signals a significant shift in investor sentiment, with more investors favoring transparent and potentially more cost-effective investment instruments.
Despite the recent outflows experienced by US spot Bitcoin ETFs, Fidelity’s FBTC and BlackRock’s IBIT ETFs have demonstrated remarkable resilience. Both funds have experienced inflows for an impressive 59 consecutive trading days, positioning them among the top 20 longest streaks for any ETF.
BlackRock’s IBIT 0.00%↑ currently leads the pack with 264,233 BTC under its management, followed closely by Fidelity’s FBTC with 150,563 BTC. Ark Invest 21Shares’ ARKB 0.00%↑ holds 43,726 BTC in its portfolio, according to data from Coinglass.
The rise in popularity of spot Bitcoin ETFs coupled with the decline of GBTC, driven by its higher fee structure, underscores a clear preference for these modern investment vehicles. However, the recent outflows also highlight the potential for short-term volatility inherent in the cryptocurrency market.
Looking ahead, it remains to be seen whether Fidelity and BlackRock can sustain their momentum or if a broader market correction will dampen investor enthusiasm for Bitcoin ETFs. Nevertheless, the growing popularity of these new investment options reflects Bitcoin’s maturing market and increasing institutional acceptance.
*Disclaimer: Not Financial Advice. Investors should conduct thorough research and seek professional advice before making any investment decisions.*