Fidelity's FBTC Bitcoin ETF Outperforms Blackrock's IBIT
US banks witness rising demand as BTC bounces back to over $70,000
March 26, 2024 06:19 AM
Reading time: 1 minute, 28 seconds
TL;DR US banks report a significant increase in client demand for spot Bitcoin ETFs. Fidelity's FBTC Bitcoin ETF outperformed BlackRock's IBIT in total inflows, marking a trend of growing investor interest. Meanwhile, the Bitcoin price has shown resilience, bouncing back past $70,000.
After a period of notable outflows, the landscape for Bitcoin ETFs has shifted dramatically. Spot Bitcoin ETFs have seen a resurgence of interest, with nine such ETFs recording net positive inflows as of Monday, March 25.
Among the contenders, Fidelity's FBTC Bitcoin ETF emerged as a standout, drawing $261 million in inflows and surpassing BlackRock's IBIT, which garnered $35 million.
However, not all ETFs have experienced positive momentum. The Grayscale Bitcoin ETF (GBTC) has faced continuous outflows, totaling $350 million on Monday. Market analysts had anticipated a slowdown in these outflows, attributing the recent movements to bankruptcy-related sales by Gemini and Genesis.
Bloomberg strategist, James Seyffart, suggests that the liquidation of shares by these entities was a strategic move, aiming to offload positions at net asset value (NAV).
"There was undoubtedly a self-serving motive behind liquidating these positions at NAV."
Amidst this backdrop, wealth desks at major banks are reporting a surge in demand for Bitcoin spot ETFs from their clients. This growing appetite is not limited to ETFs alone but extends to structured products such as Accumulators and Financial Contracts for Differences (FCNs).
Asset managers are also increasingly incorporating BTC allocations into portfolios, signaling a broader acceptance of cryptocurrencies as a viable asset class.
The upcoming week is set to offer further insights into the institutional embrace of Bitcoin ETFs. Investment managers are required to file their 13F forms with the Securities and Exchange Commission (SEC), which will shed light on recent purchasing trends.
This documentation could potentially confirm the growing institutional interest in cryptocurrency-based financial products.
The positive inflows into Bitcoin ETFs have coincided with a rebound in the Bitcoin price, which has surged past $70,000. Currently, Bitcoin is trading up 5.5% at $70,533, with a market cap of $1.387 trillion, underscoring the cryptocurrency's resilience and the market's optimistic outlook.
