BlackRock and Fidelity have made a monumental entrance into the world of exchange-traded funds (ETFs) with their spot Bitcoin ETF, amassing more assets in its debut month than any other ETF launched in the U.S. over the past three decades. Data from Bloomberg Intelligence reveals that both BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) accumulated over $3 billion in assets each within the first 17 trading days, a feat unmatched by any other ETF among the 5,500-plus available.
ETF analyst Eric Balchunas, speaking in a post on February 8, described IBIT and FBTC as standing "in a league of their own." Their performance is particularly noteworthy given that most other ETFs on record are categorized as "bring-your-own" funds, meaning they rely solely on existing investor assets. Balchunas highlighted the unprecedented nature of IBIT and FBTC's success, noting that they have seen inflows every trading day since their launch, a rarity in the ETF space.
The remarkable performance of BlackRock and Fidelity's Bitcoin ETFs is further emphasized when compared to other notable ETF launches. Prior to the spot Bitcoin ETF, BlackRock's iShares Climate Conscious & Transition MSCI USA ETF held the top spot for first-month assets under management, launched in June 2023 with $2.2 billion in assets. Balchunas underscored the significance of IBIT and FBTC's consistent inflows, especially considering the competition and variety of ETFs flooding the market.
Other Bitcoin-related ETFs, such as ARK 21Shares’ Spot Bitcoin ETF and Bitwise Bitcoin Fund, also secured positions among the top 25 in terms of first-month assets. The ProShares Bitcoin Strategy ETF, launched initially as a futures product in October 2021, claimed the seventh spot. Balchunas clarified that the Bloomberg Intelligence data excluded ETFs that underwent conversions, like Grayscale’s Bitcoin Trust (GBTC), and approximately 100 mutual funds that transitioned into ETFs.
Balchunas suggested that intense competition among ETF issuers played a significant role in driving investor interest, as some issuers simultaneously launched multiple ETFs on the same day. Despite this, IBIT and FBTC have managed to stand out even when compared to some of the largest ETFs based on 2024 flows. BlackRock’s Bitcoin ETF secured the fifth position based on February 5 data, while FBTC closely followed in the eighth spot, surpassing all but three broad index funds tracking the S&P 500 and Vanguard's Total Stock Market ETF.
