Fidelity has achieved a new record of their Bitcoin Spot ETF daily inflow last week where it reached more than BlackRock’s daily transaction that day.
The investment firm seems to be catching up with BlackRock in the crypto market as its overall assets under management or AUM for Bitcoin Spot ETF is now more than half of BlackRock’s.
Fidelity Nearing BlackRock
Fidelity reached a new record of daily inflows from their Bitcoin Spot ETF where it reached around $500 Million last week.
The number is higher than BlackRock’s daily inflow of that day but not higher than the overall record of BlackRock’s daily inflow.
BlackRock is still considered to be the number one biggest financial firm in the crypto space and the overall financial space, even though it is still trailing behind Grayscale in terms of Bitcoin Spot ETF AUM.
Daily Inflow record for Bitcoin Spot ETF transactions from BlackRock still is currently the highest, reaching around $788 Million in a day.
But the ranking still stands where according to data from Coinglass, Grayscale is still leading,thanks to the conversion of its GBTC ETP or Exchange Traded Product into an ETF or Exchange Traded Fund.
Grayscale currently has $24.8 Billion in AUM with a 45.3% market share in the Bitcoin Spot ETF space, followed by BlackRock with $15.1 Billion with a 27.6% market share.
Fidelity is currently catching up to BlackRock with AUM of $8.8 Billion and a 16.1% market share, which seems far but a huge accomplishment considering their competitions.
The rankings might change in the future as Grayscale is losing its market share by the day because of their high transaction fees.
Netflow Lowers but Still Positive
But sadly, the overall inflow has been decreasing ever since the crash happened from Bitcoin’s all time high to its current price.
Looking at data from Coinglass, it can be seen that the netflow has been decreasing the last couple of days after peaking on March 13th, 2024.
The decreasing netflow is due to the fact that the market condition is not looking good as institutional investors are hesitant to increase their holdings.
This is due to the fact that the macroeconomic conditions are not looking good after the US government published the inflation data where it shows that the real inflation rate is currently going up.
Investors are worried because the data does not support the statements and predictions of the US Government and the head of the US Central Bank, Jerome Powell, which stated that in 2024 inflation will go down further.
This has caused worries as there is a potential change of the macroeconomic sentiment where the 2024 condition might feel the same as 2022, lowering the price of the overall riskier assets.
The current sentiment is also what pushed most of the cryptocurrencies price downwards as crypto is still considered a risky asset.
Lack of institutional investor’s inflow has managed to lower the confidence of retail investors which evidently triggered the selling volume to increase.
But overall, looking at the data of Bitcoin Spot ETFs, it can be seen that there are still some institutional investors that are holding the line so not all of them are selling.
This might be a good sign as there are potential movements that will drive Bitcoin’s price upwards again, probably after the Bitcoin Halving.
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