ETF Spotlight: FBTC Flows Soar as Bitcoin ETFs Roar

ETF Spotlight: FBTC Flows Soar as Bitcoin ETFs Roar

The Fidelity spot bitcoin fund has added more than $1 billion in net flows over the past month.

ETF.com
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Contributing Editor
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Reviewed by: etf.com Staff
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Edited by: Ron Day

The Fidelity Wise Origin Bitcoin Fund (FBTC) generated nearly $680 million in daily inflows over a two-day period earlier this week, spearheading the latest spike in a month-long upturn for the fledgling spot bitcoin exchange traded funds. 

FBTC has reached more than $9.5 billion in net flows to rank a solid second behind BlackRock's iShares Bitcoin Trust (IBIT) among the 11 products that began trading this year. This week it eclipsed IBIT, which generated a still respectable $430 million in net flows. 

"Fidelity not messing around," Bloomberg Senior ETF Analyst Eric Balchunas tweeted on Wednesday after the previous day's $379 million upswing. 

The recent jump in flows has come as demand for digital asset-focused investments resumes, a result of growing investor comfort with the assets and perception that regulators have become more receptive to them. Bitcoin was recently trading over $71,000, roughly flat over the past 24 hours and down from its all-time high above $73,000 in March, but the asset is up more than 2.5% for the week and 61% year-to-date.

etf.com: FBTC flows.

Spot bitcoin ETFs are based on the ongoing price of bitcoin, the largest cryptocurrency by market capitalization. 

FBTC has generated more than $1 billion in flows over the past month behind only IBIT. Those two funds have accounted for an approximately $3.8 billion upswing in flows over this period. Flows into the products rested at the end of March and into April following a torrid beginning in which IBIT became the fastest fund in ETF history to pass $10 billion in inflows. 

In an email to etf.com, Bloomberg ETF Analyst James Seyffart attributed the increased ETF flows to a change in the political climate in which crypto-shy Democrats have joined Republicans to show support for digital assets.

"I think the flows we are seeing now into bitcoin ETFs are partly a culmination of this shift," Seyffart said, adding: "We are also about 5 months into the spot bitcoin ETFs' existence, it's possible different wealth platforms, advisors, and institutions are allowing more investment into the ETFs."

Issuers won long-sought approval from the Securities and Exchange Commission on Jan. 10 to begin trading, overcoming the agency's concerns about fraud and market manipulation.

James Rubin is a contributing editor for etf.com, where he produces the Morning Exchange and Weekly Exchange newsletters. A longtime financial writer, editor and book author, he formerly held positions as a news and markets editor for the Americas at CoinDesk, where he focussed on cryptocurrencies. 

He provided editorial guidance for a Wall Street Journal best-selling book on Bitcoin and oversaw a startup newsroom focused on digital financial assets. He has edited for TheStreet and Unchained, where he wrote daily news stories about the trial of fallen crypto entrepreneur Sam Bankman-Fried. His writing has also appeared in The Hollywood Reporter, Forbes.com, AdWeek, Bankrate, The Financial Brand and The Wall Street Journal. He has also written for Forbes Insights and the Economist Intelligence Unit, including papers presented at World Economic Forums in Davos and Mumbai. 

James is the co-author of The Urban Cyclist’s Survival Guide (Triumph Books) and has been interviewed about bike safety on a number of NPR affiliates. In a prior career, Rubin was a world-ranked tennis player, once competing in Wimbledon’s qualifying rounds. He speaks fluent German and is a graduate of the Columbia University Graduate School of Journalism and received his BA at Columbia University.