Bitcoin ETF Regain Momentum As Investment Advisors Pour $40M In FBTC

by

Two investment advisors have invested over $40 million each in the Fidelity Bitcoin Exchange-Traded Fund (FBTC), expressing great excitement about it. Additionally, according to Eric Balchunas, an analyst at Bloomberg, this is a noteworthy development for crypto adoption. This announcement follows a recent increase in Bitcoin ETF investments after substantial withdrawals the previous week.

Investment Firms Wager $40 Million On FBTC

In a recent post on X, Balchunas announced that there’s been a new record-breaking investment in one of the bitcoin ETFs. Specifically, two advisors have each put in $20 million into FBTC, which equates to 6% and 5% of their total portfolios respectively. Notably, this investment overshadows the previous high set by an advisor’s $17 million contribution to BlackRock’s IBIT Bitcoin ETF.

Balchunas commented on the situation, noting, “This could be a delightful development for those anticipating long-term acceptance, but a dreadful turn of events for the RIA Skeptics branch of the Underwhelmers Club. Moreover, we may be in for further surprises.”

Balchunas explained that we can expect to see several more weeks, around 5-6 weeks, of similar 13F reporting from approximately 500-1000 firms as they disclose their cryptocurrency holdings. This surge in institutional investment demonstrates the increasing acceptance and trust in cryptocurrencies from traditional financial circles.

Spot Bitcoin ETF Inflows Rebound

On April 22nd, BlackRock’s IBIT received an additional $19.4 million, making it the 70th consecutive day that this ETF has seen investments since its debut. This impressive record positions BlackRock’s IBIT among the top ten exchange-traded funds with the longest streaks of daily inflows. At the same time, Bitcoin ETFs collectively attracted $62.2 million in new investments.

At present, BlackRock’s IBIT Bitcoin ETF owns approximately $15.4 billion worth of Bitcoins based on current pricing. BlackRock keeps receiving significant investments, while Grayscale Bitcoin ETF has seen a consistent decrease in assets under management. As a result, IBIT is closing the distance between itself and GBTC and could potentially take the lead as the largest Bitcoin investment fund in the marketplace.

The total sum of money flowing into all funds was $62.0899 million. However, Grayscale GBTC experienced an outflow of $34.993 million in a single day. Conversely, Fidelity ETF FBTC reported a daily inflow of $34.83 million. Over the past three trading days, FBTC has exceeded BlackRock’s IBIT in terms of daily investments.

The total amount of money invested in Spot Bitcoin ETFs throughout history has grown to an impressive $12.38 billion. Furthermore, Bitwise CEO Hunter Horsley anticipates that wealth management firms will likely invest more in these ETFs in the future.

Read More

2024-04-24 00:23