IBIT Surpasses FBTC with $196M Inflow, Fidelity's Fund Sees Significant Outflows
BlackRock's iShares Bitcoin Trust (NASDAQ: IBIT) saw a significant $196 million inflow on October 1, marking the largest single-day inflow for any U.S. spot Bitcoin (CRYPTO: BTC) fund that week.
This influx comes after IBIT recorded $292 million in inflows over four days, while Fidelity's Wise Origin Bitcoin Fund (CBOE: FBTC) hemorrhaged $197 million during the same period, despite both funds holding identical Bitcoin at the same 0.25% fee.
IBIT's large size, with roughly $67 billion in net assets as of September 28, accounting for about 62% of the total $109 billion across all U.S. spot Bitcoin funds, makes it easier for large trades. The biggest fund typically has a narrower gap between buying and selling prices, allowing institutions to execute large trades without significantly affecting the market price.
The timing of these movements is influenced by the calendar, with September 30 marking the last trading day of the third quarter, when pension funds and advisors often rebalance their portfolios, trimming holdings that have exceeded their target allocation. Given that Bitcoin surged about 36% in the third quarter, managers holding FBTC likely had incentives to sell some stakes as the new quarter began.