American investment firm BlackRock is now the biggest issuer of spot Bitcoin Exchange-Traded Fund (ETF) as regards Assets Under Management (AUM). Eric Balchunas, a Senior ETF analyst at Bloomberg, shared data showing the BlackRock iShares Bitcoin Trust (IBIT) well ahead of global ETF leaders in ranking
While IBIT solidifies its position as a global leader, Fidelity’s Bitcoin ETF (FBTC) has also stood out as a dominant force in the market. Many in the crypto space wonder if FBTC can flip IBIT soon.
IBIT’s Position Among Global Non-Crypto ETFs
Looking at the data shared by Balchunas, approximately $911 billion has flowed into the global ETF market Year-To-Date (YTD). Bulchunas noted that the inflows represent a huge milestone as the market approaches its annual record break of $1.2 trillion.
Balchnas attributes the global ETF success to increased contributions from non-US countries, who have added over 40% of the total, up from 25% in 2021. He added that global ETFs have set a record pace, with 1,121 new ETFs launched this year.
BlackRock is another huge contributor to the global ETF market. So far, BlackRock’s iShares Bitcoin inflows have soared to $20.5 billion YTD, making it the top Bitcoin ETF performer. IBIT has outshined other non-crypto ETFs like VTI from Vanguard Asset Management and 510300 from Huatai-PineBridge Fund Management in the global ETF ranking.
IBIT is now regarded as the third-largest worldwide ETF, outperformed only by Vanguard’s VOO and IVV, BlackRock’s non-crypto ETF. Meanwhile, Fidelity’s FBTC was also spotted in the 14th spot on the global ETF landscape, ahead of other non-crypto ETFs like BlackRock’s DNYF.
BlackRock Bitcoin ETF Rivals
IBIT is way ahead of other top competitors in the spot Bitcoin market. Recent data from Farside Investors shows IBIT has amassed about $20.5 million since it began trading in January. According to the details, BlackRock has flipped FBTC’s $9.8 million and Bitwise’s $2 million. On August 19, IBIT recorded a huge single-day inflow of 92.7 million.
Surprisingly, IBIT’s outstanding performance comes amid a decline in the broader market. The past few months have seen Bitcoin falling, with prices below the $55,000 mark. However, Bitcoin’s price, although still consolidating, has recovered to $60,000. As of this writing, Bitcoin price was trading at $59,590, demonstrating a 0.75% increase in 24 hours. However, the trading volume decreased 12% in the past day to $26 million.
IBIT’s huge inflows, despite challenges in the broader ecosystem, indicate rising interest from institutional investors. More investors are beginning to recognize the benefits of holding crypto assets.
Can Fidelity or Grayscale flip BlackRock’s IBIT?
Whether Fidelity or Grayscale can outshine BlackRock’s IBIT hinges on many factors, such as investor sentiment, trading fees, etc. For now, IBIT has demonstrated that it is ready to retain the top spot, with its fee way below that of Grayscale and Fidelity. BlackRock has set its fee of 0.21%, Fidelity 0.25%, and Grayscale 1.5%.
Meanwhile, Grayscale ETF continues to see outflows from its Bitcoin ETF. Over $19.6 billion has flowed out of the fund. If this continues, the firm’s flipping race against BlackRock might not work out.
Fidelity has a rather healthy netflow, and FBTC might be the best option should any Bitcoin ETF product aim to replace IBIT.
