BlackRock, Fidelity Capture Most Inflows Into US Spot Bitcoin ETFs

The US spot Bitcoin exchange-traded fund market is increasingly becoming dominated by BlackRock and Fidelity, with smaller funds losing ground as investors concentrate assets with the largest issuers.

CoinDesk reported on June 10 that BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) have absorbed most new institutional money entering the market this year.

On Jan. 14, spot Bitcoin ETFs posted total net inflows of $840.6 million. Of that, IBIT drew $648.4 million and FBTC took in $125.4 million, accounting for more than 90% of the total.

On April 17, the market recorded total net inflows of $663.9 million. IBIT attracted $284 million and FBTC added $163.4 million, together absorbing about two-thirds of the total.

CoinDesk said the spot Bitcoin ETF market is moving away from a structure in which multiple asset managers compete for flows. Instead, it is shifting toward a winner-take-most model in which a small group of large providers with scale, liquidity and distribution networks capture most of the money.

Diana Pires, chief business officer at digital-asset prime brokerage sFOX, said some buying has emerged after Bitcoin’s recent price decline. Still, a meaningful recovery in spot demand has yet to be confirmed.

She added that continued outflows from spot Bitcoin ETFs are keeping institutional investors cautious.

Market participants view spot ETF flow trends as a key gauge of Bitcoin’s price direction and institutional sentiment going forward.