Spot Bitcoin exchange-traded funds (ETFs) iShares Bitcoin Trust from BlackRock and Bitcoin ETF Fidelity Wise Origin ranked eighth and 10th among all ETFs in January for the largest flows, at about $4.8 billion.
According to a Morningstar research analyst report on February 3, BlackRock’s iShares Bitcoin Trust (IBIT) has net flows valued at $2.6 billion, ranking eighth, while Fidelity Wise Origin Bitcoin ETF (FBTC) ranked 10th with net flows of US$2.2 billion.
Related: Bitcoin Reacts Negatively to the Fed’s Interest Rate Freeze
“Never thought I’d see this day,” Nate Geraci, president of investment advisory firm ETF Store, wrote in an X-post sharing the data.
In a separate post, Geraci quipped that BlackRock and Fidelity funds are in a “clear two-horse race” among the nine new Bitcoin funds.
He added that the joint ETF from ARK Invest and 21 Shares, along with Bitwise – both managing assets not exceeding $650 million – are developing as a robust “middle class.” He predicted that their assets would reach the billion-dollar milestone in the foreseeable future. “The future’s looking pretty well-off.”
Senior Bloomberg ETF Analyst Eric Balchunas shared in an X-post on February 3, expressing how “really interesting” it was to witness that nine ETFs, excluding GBTC, “comeback after taking a dip last week.”
“Usually, after a big hyped-up launch, there’s a gradual decline,” he added, emphasizing that the net inflow into the funds in the third week of trading “shows these ETFs have legs.”
The Traditional Finance Market is Unhappy with Tether’s Stability
While the Bitcoin ETF confidently secures its position in the U.S. financial market, Tether’s dominance is on the rise, leaving traditional banking bigwigs dissatisfied. USDT Tether is the largest stablecoin by market capitalization and one of the most popular digital assets.
Over the past year, the stablecoin’s market share has rapidly expanded due to regulatory issues that affected competitors like USDC Circle and Binance-backed BUSD. The latest Tether audit report revealed that this dominance resulted in a net profit equivalent to 10% of JPMorgan’s earnings for the last quarter of 2023.
On February 1st, JPMorgan expressed its concerns about Tether’s impact on the broader cryptocurrency market, citing worries about the “lack of regulatory compliance and transparency.” The Wall Street giant also voiced concerns that Tether poses a risk to the cryptocurrency due to its deep integration into the system.
Additionally, the bank threw some shade at Tether compared to Circle, highlighting the latter’s better alignment with regulatory requirements.
However, these comments were met with a fierce response from Paolo Ardoino, Tether’s CEO, who staunchly defended the coin’s stability, citing its effectiveness during last year’s banking crisis. He emphasized the company’s collaboration with regulatory bodies to enhance understanding of blockchain technology.
Tether showed greater stability in the ‘black swan’ scenario compared to the several major U.S. banks did last year. As we grasp the gravity of our invention, we’ve always worked closely with global regulatory bodies to educate them on this technology and provide recommendations on how they should approach it.
More on Bitcoin from HODL FM:
- Bitcoin: A Potential Game-Changer for Western Civilization, Says Coinbase CEO
- SEC’s Potential Approval of 12 Spot Bitcoin ETFs Creates Excitement and… Speculation
- From Bitcoin Prophets to Walmart Penguins – Crypto Predictions, Influencer Dramas, Regulatory Showdowns, and Retail NFTs
The CEO of Tether went on to point out that JPMorgan’s comments “seem hypocritical” coming from the “biggest bank in the world.” He expressed concern about such remarks coming from a bank that faced fines close to 40 billion dollars and urged JPMorgan to take a cue from Tether’s success in the stablecoin sector.
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