BlackRock and Fidelity Bitcoin ETFs among top 10 largest funds by asset value

Bloomberg ETF analyst, Eric Balchunas has compiled a list of the top-performing exchange-traded funds (ETFs) over the past decade, and two spot Bitcoin ETFs made the top ten. BlackRock’s IBIT and Fidelity’s FBTC ranked fourth and ninth, respectively. 

According to Balchunas, this is a remarkable feat for both ETFs, given their relatively recent launch date. Compared to most of the other ETFs on that list, which have been around since 2020, the two Bitcoin ETFs only became available in January, which means they have not traded for up to ten months.

Balchunas said:

“There’s been about 2,000 ETFs launched this decade, here’s the top 10 biggest by assets. All over $10 billion = stud level. Half the list is low-cost legacy active eg [JP Morgan], [Dimensional Fund Advisors], [Capital] Group. IBIT and FBTC stunning given how young they are.”

The massive assets under management (AUM) for both IBIT and FBTC, $21.52 billion and $9.87 billion, respectively, also highlight the level of interest and activity that crypto ETFs have enjoyed in 2024, setting the stage for what could be a remarkable future for the industry.

Bitcoin ETFs are the fastest-growing ever

While BlackRock and Fidelity’s spot Bitcoin ETFs might be the biggest in terms of asset value, all Bitcoin ETFs have had good runs generally. Since the ETFs launched on January 11, they have recorded a cumulative inflow of over $45 billion, making them the fastest-growing ETFs ever.

So far, October has brought mixed but generally negative flows for these Bitcoin ETFs. Over the past two days of the month, BlackRock’s IBIT recorded inflows of $40.8 million, followed by outflows of $13.7 million, while FBTC had an outflow of $144.7 million, followed by an inflow of $21.1 million.

For the other ETFs, such as Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, VanEck’s HODL, Valkyrie’s BRRR, Wisdom Tree’s BTCW, and Grayscale’s GBTC and Mini BTC, there have been mostly zero flows and minimal outflows for the past two days.

Only Ark’s ARKB has recorded two consecutive days of outflows, with $84.3 million and $60.3 million, leading to three days of back-to-back outflows stretching to the previous week.

Despite the muted performance at the start of a historically bullish month, Bitcoin ETFs remain well-positioned to see more inflows and continue growing. BlackRock recently got approval for options trading for IBIT, and other Bitcoin ETFs will likely get similar approval once they apply. Options trading will provide a new way for institutional investors to gain access to spot Bitcoin ETFs.

Bitcoin declines 6% in October

Meanwhile, the mixed flows for spot Bitcoin ETFs are partly due to the performance of the flagship asset itself. Bitcoin has seen a significant drop in value since October, going from over $64,000 at the start of the month to $60,773. According to CoinMarketCap, it declined 1% in the past 24 hours.

The fall in price is due to the escalation of conflicts in the Middle East, which is forcing investors to exit risky assets such as cryptocurrencies. With tensions heightening and the likelihood of a full-scale war increasing, the impact of these geopolitical tensions on Bitcoin raises concern about the asset maturity and its comparison with gold.

However, the general sentiment among investors is bullish, with many noting that poor performance at the start of the month will not impact Bitcoin’s growth in the long term.

Historically, October has been BTC’s best month, with the asset-only recording negative performances in three Octobers since 2013.