- BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Trust (FBTC) have become two of the top 20 exchange-traded funds with the longest streak of continuous inflows of all time.
- IBIT and FBTC have seen continuous inflows for 59 trading days since their launch, outperforming 99.9% of all ETFs ever launched.
- The record-breaking performance of these spot Bitcoin ETFs is attributed to institutional investors’ growing interest in cryptocurrencies, inflationary pressures, and the pursuit of alternative investments amid economic uncertainty.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity‘s Wise Origin Bitcoin Trust (FBTC) have achieved a new milestone. They are now two of the top 20 exchange-traded funds (ETFs) with the longest streak of continuous inflows in history.
Inflows Since Launch
Bloomberg ETF analyst Eric Balchunas noted on April 8 that IBIT and FBTC have seen uninterrupted inflows since launching 59 trading days ago. The funds have outperformed over 99% of all ETFs launched since the 1990s. There are about 9,000 ETFs globally as of end-2022. The funds will break into the top 10 ranking if inflows continue for 11 more days.
Reasons for Success
Analysts attribute the ETFs’ record-breaking performance to several factors:
- Institutional interest in cryptocurrencies is growing
- Inflationary pressures
- Pursuit of alternative investments amid economic uncertainty
The ETFs offer a regulated, safer way for investors to gain Bitcoin exposure without dealing with crypto ownership complexities.
In terms of absolute inflows, IBIT and FBTC also dominate. As of April 5, IBIT’s net assets were nearly $15 billion. FBTC stood at $8 billion.
Overcoming Regulatory Challenges
Spot Bitcoin ETFs debuted after years of regulatory skepticism. Authorities like the SEC had concerns about crypto market volatility and manipulation risks.
The ETFs’ success has fueled hopes for more digital asset financial products. This could potentially expand to include ETFs for cryptocurrencies like Ethereum.
