BlackRock and Fidelity’s Bitcoin ETFs have made history by amassing over $3 billion in assets each within their first month, setting a new record in the ETF industry.
The surge in Bitcoin’s value to $46,000 sparks debate among experts on whether the next target is $40,000 or $50,000.

In a landmark event for the Exchange-Traded Fund (ETF) industry, BlackRock and Fidelity’s Bitcoin ETFs have rewritten the record books in the U.S. Out of the over 5,500 ETFs launched in the last three decades, these two stand alone in securing over $3 billion in assets within just their first month.

This feat surpasses the previous record set by BlackRock’s iShares Climate Conscious & Transition MSCI USA ETF, which attracted $2.2 billion in its inaugural month in June 2023, as illustrated in a recent CNF YouTube video.

Both BlackRock’s IBIT and Fidelity’s FBTC ETFs have distinguished themselves not merely through their rapid asset growth but also through their consistent daily inflows since their launch. This achievement is particularly remarkable within the broader ETF landscape, overshadowing other Bitcoin-centric ETFs such as ARKB and BITB, which also made it into the top 25 for first-month asset management.

Nonetheless, the accomplishments of IBIT and FBTC are especially significant when juxtaposed with major broad index funds and Vanguard’s Total Stock Market ETF in terms of this year’s inflows.

Eric Balchunas, Senior ETF Analyst for Bloomberg, underscored the exceptional performance of these ETFs, pointing out that IBIT and FBTC stand in a league of their own with over $3 billion each in assets, and they were still counting with two days left in their debut month.

Here’s a look at the Top 25 ETFs by assets after 1 month on the market (out of 5,535 total launches in 30yrs). $IBIT and $FBTC in league of own w/ over $3b each and they still have two days to go. $ARKB and $BITB also made list. pic.twitter.com/Yyi1nxukUk

— Eric Balchunas (@EricBalchunas) February 8, 2024

Will Bitcoin Hit $40,000 or Surge to $50,000 Next?

The financial community is at a crossroads, debating if Bitcoin’s upward trajectory will propel it to $50,000 or if a correction pulling it back to $40,000 is imminent. Concurrently, Ethereum is experiencing an upswing, achieving a two-week peak following an amendment to the joint spot ETH ETF proposal by Ark Invest and 21Shares. This development was highlighted on Trading View, a renowned charting platform and social network.

Laurent Ksiss, a specialist in crypto Exchange-Traded Products (ETPs) at CEC Capital, remarked, Surpassing the $45,000 mark could position the early Bitcoin ETF investors on the verge of profitability. He suggested that

the current upward trend might lead some investors to realize profits, potentially causing a pullback to the $40,000 to $42,000 range

Conversely, Markus Thielen, head of research at Matrixport and the founder of 10x Research, provided a bullish outlook, stating,

Bitcoin is poised to approach $48,000 shortly, buoyed by its historically strong performance around the Chinese New Year.

He further elaborated that Bitcoin’s tendency to appreciate by over 10% around this festive period, particularly after February 10, makes the ensuing days critically significant from a statistical standpoint. This assertion, combined with insights from the CNF YouTube video, strongly suggests that Bitcoin’s ascent could breach higher thresholds, possibly touching $50,000.

As BlackRock and Fidelity’s Bitcoin ETFs redefine the ETF domain, and with Bitcoin’s price currently at $46,182, marking a 3.90% increase in the last 24 hours and a 7.02% rise over the past week, the anticipation within the financial community grows.

The ongoing debate over Bitcoin’s potential surge to $50,000 or a correction to $40,000 encapsulates the dynamic and speculative essence of the cryptocurrency market.

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Filed under: Bitcoin - @ February 9, 2024 7:24 am