BlackRock and Fidelity lead the ETF market despite multiple challenges

• Bitcoin ETFs IBIT and FBTC excelled with over $10 billion in assets amid the market downturn.
• Ethereum ETFs struggled, facing cumulative outflows as Bitcoin and Ethereum prices declined.

As the cryptocurrency market grapples with a broader downturn, Bitcoin [BTC] ETFs are not immune to the prevailing trends.

Recent reports from Farside Investors reveal that BTC ETFs experienced significant outflows, amounting to $52.9 million on 2nd October.

Balchunas highlights top performers

However, amidst this challenging landscape, Eric Balchunas, a senior ETF analyst at Bloomberg, has identified two standout Bitcoin ETFs—BlackRock’s IBIT and Fidelity’s FBTC—as top performers of the 2020s.

Both funds have achieved “stud level” status, boasting over $10 billion in Assets Under Management (AUM), highlighting their resilience and appeal to investors even in turbulent times.

In his X (formerly Twitter) post, Balchunas noted, 

Source: Eric Balchunas/X

Echoing Balchunas’ sentiment, an X user added, 

Source: Charles/X

Blackrock’s and Fidelity’s Bitcoin ETFs analyzed

This trend was further confirmed by data from Farside Investors, revealing that since its launch, BlackRock’s IBIT has amassed a staggering $21.5 billion in total inflows, while Fidelity’s FBTC has attracted $9.9 billion.

These two ETFs have set the pace, leaving other funds trailing.

However, October, traditionally viewed as an “Uptober” month following a declining September, has brought mixed results.

On the 1st of October, IBIT experienced an inflow of $40.8 million, contrasting sharply with FBTC, which faced outflows of $144.7 million.

IBIT recorded outflows of $13.7 million on the 2nd of October, while FBTC rebounded with inflows of $21.1 million, illustrating the volatility and shifting dynamics within the ETF landscape.

Ethereum ETF performance

Conversely, the performance of Ethereum [ETH] ETFs has also been underwhelming.

On the 1st of October, cumulative outflows for ETH ETFs reached $48.6 million, with BlackRock’s ETHA experiencing no inflows or outflows, while Fidelity’s FETH saw outflows of $25 million.

ETHA continued to struggle, posting outflows of $18 million on the following day.

Whereas FETH maintained a steady position with no flows recorded.

This trend highlights the challenges facing Ethereum ETFs in the current market environment.

Growing concerns around Grayscale’s GBTC

Amidst there was another X user who asked a very concerning question,

“Would this not then make #GBTC one of the worst performing ETFs of this decade?” 

This observation is further substantiated by the latest update from Farside Investors, revealing that Grayscale’s GBTC has experienced a staggering total outflow of $20.1 billion since its launch.

Similarly, Grayscale’s Ethereum ETF, ETHE, had faced significant outflows totaling $2.93 billion, which surpassed the combined outflows of all other ETH ETFs.

BTC and ETH price action

On the price front, both cryptocurrencies were experiencing a downward trend, with Bitcoin trading at $60,480.03, reflecting a decline of 0.98% in the past 24 hours.

Meanwhile, Ethereum was trading at $2,347.81, showing a more substantial dip of 4.35% over the same period.