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By comparison, the fund’s second-strongest day so far was on January 17, its fourth active day of trading, when it received $358 million of inflows. Most days aside from then haven’t netted more than $200 million for the fund, though its streak of non-stop inflows stayed unbroken since January 11.
Big Day For Fidelity Bitcoin ETF
According to BitMEX Research, Fidelity has now received $5.2 billion of flows and holds a total BTC stash worth $7.49 billion.
[1/4] Bitcoin ETF Flow – 04 March 2024
All data in. Very strong day with +$562m net flow. Fidelity very strong with a record day
Not the best day for diversity, with smaller players BTCO, HODL & BTCW all having outflows pic.twitter.com/drCrg6EzsN
— BitMEX Research (@BitMEXResearch) March 5, 2024
Fidelity’s success still wasn’t enough to trump BlackRock’s iShares Bitcoin Trust (IBIT), however, which netted $420.1 million on Monday. In total, flows into the two funds vastly outperformed sell pressure from the Grayscale Bitcoin Trust (GBTC) worth $368 million, contributing to daily net flows worth $562.7 million.
Since its launch on January 11, Bitcoin ETFs surpassed an AUM of $50 billion on Tuesday, having started with just under $30 billion with Grayscale’s stash included. New flows into the funds have brought in a net new $7.9 billion, with the rest of their gains coming from Bitcoin’s price appreciation.
Altogether, the new nine Bitcoin ETFs–excluding Grayscale–have received over $17 billion of net flows. For context, the world’s first gold ETF took two years to absorb $10 billion of inflows.
Gold and Bitcoin Hit New All-Time Highs
Gold’s price tapped a new all-time high of $2,140 per ounce on Tuesday. Though Bitcoin’s price also briefly tapped a new all-time high of $69,200, the asset has since collapsed back to $63,100 at writing time in the face of massive crypto market liquidations.
“Big moment for Bitcoin but I’d argue just as big a moment for ETFs,” argued Bloomberg ETF analyst Eric Balchunas regarding the asset’s record high.
By his analysis, Bitcoin’s run up from $25,000 since June 2023 was primarily due to hype surrounding the ETFs, and actual flows into the funds after they launched.
“ETFs (and its ecosystem) so damn good at taking something and making it liquid, cheap, convenient and standardized,” he continued. “Both ETFs and bitcoin mutually benefit from one another.”