BlackRock, Fidelity drive $347M into Bitcoin ETFs

Spot Bitcoin exchange-traded funds recorded $347 million in net inflows in the latest U.S. trading session, with BlackRock and Fidelity among the largest recipients of investor purchases.

Market-tracking data and fund filings show BlackRock’s iShares Bitcoin Trust and Fidelity’s Fidelity Wise Origin Bitcoin ETF accounted for the bulk of the $347 million total. Other issuers posted smaller purchases, and a few funds registered modest outflows.

The inflows occurred during regular trading hours on U.S. exchanges. Fund administrators reported net creation of ETF shares to meet investor demand, increasing assets held by the largest spot Bitcoin ETFs.

Buying was concentrated in the largest, most widely distributed funds. BlackRock and Fidelity drew flows through broad sales channels and relationships with institutional and retail intermediaries. Smaller issuers recorded lower inflows.

Fund managers and administrators attributed purchases to portfolio rebalancing and new allocations from advisory platforms. Financial advisors increased client exposure to bitcoin through ETFs, and large custodial platforms added the funds to model portfolios. Institutional investors used the ETFs to gain or adjust bitcoin exposure without direct custody of the cryptocurrency.

Spot Bitcoin ETFs hold bitcoin directly or through authorized custodians and issue shares that trade on public exchanges. The U.S. Securities and Exchange Commission approved the first wave of spot Bitcoin ETFs in January 2024, allowing asset managers to offer regulated, exchange-listed vehicles that track the price of bitcoin.

The $347 million inflow follows a pattern of periodic net purchases into the ETF sector driven by new investor allocations and reallocations by existing holders. Fund sponsors say their offerings let investors participate in bitcoin price movements through brokerage accounts under regulatory oversight.

No official comments from BlackRock or Fidelity were included in filings released with the session’s figures. Fund administrators confirmed the net creation of shares and said they will continue to monitor inflows and manage custody arrangements in line with regulatory requirements.