BlackRock’s Bitcoin ETF is establishing itself as one of the most successful funds ever

The launch of Bitcoin (BTC)-related exchange-traded funds (ETFs) in America has caused a lot of noise in the crypto market. From a low point where the BTC price was around $16,000, the digital currency rose, partly due to enthusiasm, to a new all-time high (ATH) of just under $74,000.

In the meantime, billions of dollars have been invested in these funds, and we can safely call the Bitcoin ETFs a success. The best performer is asset manager BlackRock’s IBIT fund, which amassed a whopping $23.2 billion in assets in less than a year. This makes it the fourth largest ETF launched in the past decade. Asset manager Fidelity’s FBTC fund is also doing well, with $11 billion in assets under management since its launch the same month.

It is striking that these Bitcoin ETFs now compete with established, traditional ETFs from renowned companies such as JPMorgan and Invesco. JPMorgan’s Equity Premium Income ETF (JEPI), for example, leads the market with $35 billion in assets under management. Nevertheless, BlackRock’s IBIT has quickly risen to fourth place on the list of largest ETFs since 2020.

Institutional recognition

The remarkable growth of US spot Bitcoin ETFs marks an important step towards BTC maturity. More and more institutional investors consider the digital currency as a legitimate investment.

Outflows due to geopolitical tensions

While many funds initially saw significant inflows in the first days after their launch, many Bitcoin ETFs are now seeing significant outflows, driven by geopolitical tensions in the Middle East. On October 1, an outflow of as much as $243 million was recorded, ending a series of positive inflow days.

Fidelity was the biggest loser with outflows of $144.7 million, followed by ARK 21Shares with $84.4 million. Only BlackRock managed to achieve a positive inflow of $40.8 million. Ethereum (ETH) ETFs also suffered losses, with outflows of $48.6 million.