Nine new U.S. bitcoin exchange-traded funds (ETFs) have witnessed robust investor interest, attracting $1.9 billion in the first three days of trading.
BlackRock and Fidelity, major fund giants, dominated the inflows, surpassing post-launch flows of previous ETFs like ProShares Bitcoin Strategy ETF and SPDR Gold Shares ETF.
Outpacing Previous Records and Aggressive Estimates:
The collective flows into the nine newly launched ETFs exceeded the record set by ProShares Bitcoin Strategy ETF, which drew $1.2 billion in its initial three days in 2021.
The influx, while substantial, fell short of the most optimistic estimates of first-day flows in the billions of dollars.
Uncertain Sustained Inflows and Key Factors Influencing Investors:
Market participants are uncertain about the sustained inflows into cryptocurrency ETFs and which issuers will emerge as leaders.
Factors such as lower fees and name recognition appear pivotal in attracting investors.
BlackRock’s iShares Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund have garnered substantial assets, benefiting from their established brand presence.
Fee Structures and Issuer Strategies:
The fees among the nine issuers range from 0.19% to 0.39% before waivers. BlackRock’s fee, initially at 0.12%, rises to 0.25% after the first $5 billion in assets and the first 12 months.
Fidelity, initially charging zero, increases to 0.25% after July 31. Lower fees, with BlackRock and Fidelity leading, contribute to their appeal, as fees are a key determinant for success in the ETF space.