Summary
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) are competing closely in terms of net flows, as both funds have seen significant inflows since their launch in January. BlackRock has the advantage of being the largest asset manager globally, while Fidelity benefits from its large base of retail and advisor clients. It is difficult to predict which fund will ultimately have more assets. Other funds, such as those by Ark Invest, 21Shares, and Bitwise, are also attracting inflows, while Grayscale Investments’ Bitcoin Trust ETF (GBTC) has experienced significant outflows. The launch of spot bitcoin ETFs has a more competitive landscape compared to physically-backed gold ETFs, and it is expected that a few funds will dominate in terms of assets.
Key Points
1. The Fidelity Wise Origin Bitcoin Fund (FBTC) edged BlackRock’s iShares Bitcoin Trust (IBIT) in net flows on Monday, according to Bloomberg Intelligence data. Overall, the two financial giants are neck and neck atop the flows leaderboard since launching alongside eight other spot bitcoin ETFs on Jan. 11. IBIT and the FBTC have so far seen flows amounting to about $2.4 billion and $2.1 billion, respectively.
2. Both Fidelity and BlackRock benefit from their large and well-established distribution networks, particularly in the financial adviser channel. Fidelity has a massive base of retail and adviser clients using its brokerage services, while BlackRock is the largest asset manager in the world with significant marketing and distribution muscle.
3. The ultimate spot bitcoin ETF asset leader is difficult to predict at this stage, with analysts stating that both firms’ funds are expected to grow substantially over time. The competition between Fidelity and BlackRock is described as a “heavyweight fight” that could go either way.