- BlackRock generates $274 million in net inflows in a single day
- Fidelity takes the number one spot with net new money piling to $379 million
- Tuesday was the second-best day in terms of net inflows for the BTC ETF space
BlackRock vs Fidelity
BlackRock, the world’s largest asset manager with about $10 trillion in investments, picked up $274 million in net inflows on Tuesday. While the figure might seem lofty, there was an even bigger buyer of Bitcoin.
Fidelity, a close rival in the asset management industry, scored as much as $379 million in net new money yesterday, coming in hot for the first place as the biggest winner of the day. The investment firm’s Fidelity Wise Original Bitcoin Fund (FBTC) ETF still lags behind BlackRock’s iShares Bitcoin Trust (IBIT) ETF with Bitcoin holdings of $12 billion compared to $20 billion, respectively, according to data platform Sosovalue.
In this light, Tuesday was the second-highest intraday net new inflow gain for the Bitcoin exchange-traded fund space since its inception back in January. The entire industry collected roughly $887 million in net new money, i.e. the money that comes in after the money that has made an exit.
Healthy Competition
Healthy competition for deeper liquidity is good news for professional money managers and retail consumers alike. The more ETF issuers compete by stacking more Bitcoin for clients to purchase, the more Bitcoin’s market capitalization swells, ultimately supporting the upside narrative for prices and widespread adoption.
How does that work? One of the primary benefits of this healthy competition is the improvement in market liquidity. ETF issuers, striving to outdo one another, are compelled to ensure that their offerings are backed by sufficient Bitcoin reserves. This leads to a more liquid market with lower fees and transaction costs.
This dynamic is particularly favorable to retail consumers. Greater liquidity means that they can buy and sell Bitcoin ETFs more easily and at better prices. Lower transaction costs and improved pricing make Bitcoin investments more accessible and attractive to a broader audience, fostering greater participation in the cryptocurrency market.
