- Fidelity’s FBTC ETF also competes in the Bitcoin ETF market, with 11 investors making up another 0.2% of its outstanding shares, highlighting growing cryptocurrency acceptance.
- James Seyffart explains ETF dynamics, emphasizing creation units in managing supply and demand; IBIT saw significant inflows of $73.4 million recently, distinguishing it from other ETFs with no new inflows.
According to Bloomberg ETF analyst Eric Balchunas, these fund managers currently represent only 0.2% of IBIT’s outstanding shares. Balchunas indicates that this participation could lead to more widespread adoption in the future.
Updated look at the holders of $IBIT, there's about 30 of them so far (mostly funds and advisors) accounting for 0.2% of shares out which means this is tippy tip of iceberg (context: BITO has 42% of shares reported via 13F). Also shows lot of "nibbling" going on as evidenced by… pic.twitter.com/X7AMCw5CR3
— Eric Balchunas (@EricBalchunas) April 16, 2024
Investment strategies among these fund managers show a pattern of gradual acquisitions in the ETF, suggesting a careful but growing interest in adding Bitcoin to their asset portfolios. This methodical approach reflects a cautious optimism about the digital asset’s future in the financial markets.
And here's $FBTC holders, they have 11 so far, also representing a mere .2% of shares out, incl the Baldwin Brothers? pic.twitter.com/NTB479bgoD
— Eric Balchunas (@EricBalchunas) April 16, 2024
In the competitive sector of Bitcoin ETFs, Fidelity’s FBTC ETF has also attracted interest, with 11 investors accounting for a similar 0.2% of its outstanding shares. This competition underscores the increasing legitimacy of cryptocurrencies within the financial sector.
Read more: ETF boom: China’s move to launch XRP, Ethereum and Bitcoin funds sends prices soaring.
James Seyffart, another ETF analyst, sheds light on the mechanisms of ETF flows and market dynamics, particularly focusing on the role of creation units. These units are pivotal for managing ETF supplies and demands, particularly when imbalances occur.
For Bitcoin ETFs, these creation units can vary significantly in size, influencing how market makers and Authorized Participants manage transactions to balance the market.
Seyffart notes that most U.S. Bitcoin ETFs had seen no new inflows since the previous Friday, except for BlackRock’s IBIT, which experienced a noticeable influx of $73.4 million on April 15. This was a decrease from $111.1 million reported on the previous Friday.
Related: Bitcoin ETFs Face Hurdles, Celestia & AI Altcoin See Investment Spike
Such fluctuations highlight the dynamic nature of market engagement with these financial products. In contrast, eight other ETFs, not including Grayscale’s GBTC, recorded no new flows during the same period, further highlighting IBIT’s distinctive market position during that time.
Bitcoin (BTC) is currently trading at approximately $62,828.45 USD, experiencing a slight increase of 0.54%. The trading range today has been between $62,241.73 and $64,442.62.
