Fidelity’s FBTC Leads Bitcoin ETF Inflows Amid BlackRock Investment Stagnation

• The US spot Bitcoin ETFs are witnessing a gradual recovery, as evidenced by the collective inflows reaching $21.52 million on June 26th, continuing the positive trend that began earlier in the week.
• Despite this, BlackRock’s iShares Bitcoin Trust (IBIT) has not reported any new investments for the past four days, marking a notable pause in its activity.
• Notably, BlackRock’s recent inflow trends have been downward, with only two minor inflows recorded since June 14, both under $2 million.

The recent performance of US spot Bitcoin ETFs shows a mixed bag, highlighting the varying dynamics of major players like BlackRock and Fidelity within the market.

Slow Recovery for US Spot Bitcoin ETFs

The US spot Bitcoin ETFs market is showing signs of recovery, marked by $21.52 million in collective inflows as of June 26th. This resurgence in inflows represents a continuation of the upward momentum observed earlier in the week. While this is a positive development for the ETFs, the performance is not uniform across the board.

BlackRock’s iShares Bitcoin Trust Stagnates

BlackRock’s iShares Bitcoin Trust (IBIT), a prominent player in the ETF space, has experienced a halt in new investments for four consecutive days. This pause is not unprecedented; the fund previously went through a five-day streak without inflows back in April. According to Bloomberg ETF analyst James Seyffart, zero flows in an ETF indicate a balance between supply and demand, which neither promotes the creation nor redemption of shares. This stagnation does not necessarily imply a lack of trading activity but reflects that net flows are not substantial enough to impact share adjustments.

Other Bitcoin ETFs Share Similar Trends

The trend of zero inflows is not isolated to BlackRock’s IBIT alone. Other notable spot Bitcoin ETFs such as Bitwise’s BITB, Invesco’s BTCO in collaboration with Galaxy Digital, and Valkyrie’s BRRR also reported no inflows on the same day. This widespread stasis highlights a broader market condition affecting multiple ETFs concurrently.

Fidelity’s FBTC Bucks the Trend

In contrast to the stagnation observed in other ETFs, Fidelity’s FBTC exhibited the highest net inflows for the day, amounting to $19 million as per SoSoValue data. This marks a significant turn from its previous seven-day streak of outflows from June 13 to 24. Fidelity’s FBTC has now emerged as a leading performer among spot Bitcoin ETFs, helping to lift the market from the negative streak.

Revival in Grayscale’s GBTC

Grayscale’s GBTC, another key player in the market, has shown signs of revival, attracting just over $4 million in new investments. This is a notable development as the fund had not seen positive inflows since June 5. The overall market for these ETFs has seen a net inflow of $14.44 billion since their introduction in January, underlining their growing acceptance and investment appeal.

Conclusion

The recent performance of US spot Bitcoin ETFs underscores the diverse dynamics at play within the market. While major funds like BlackRock’s IBIT have faced periods of stagnation, others like Fidelity’s FBTC are showing positive momentum. This variability provides valuable insights for investors and underscores the importance of closely monitoring market trends and individual ETF performances.