Underperforming Bitcoin ETFs to Likely Improve in the Future

Bitcoin ETF approval was a landmark decision for the entire digital currency sphere, giving a mainstream platform to the virtual asset. However, since the approval of the ETFs, only two of them have emerged as a great success. These two ETFs, namely Blackrock and Fidelity have dominated the ETF sphere with high inflows since their debut. Despite this, Bloomberg analyst believes that even the other Bitcoin ETFs have the potential to perform well in the future.

Low-performing Bitcoin ETFs have hope for the future

Senior Analyst for Bloomberg, Eric Balchunas in an X post said that all Bitcoin ETFs have the potential to perform in the future. Balchunas states that the prediction that “some of these (Bitcoin ETFs) won’t make it” is the new sarcastic remark for those who used to say “they won’t get any assets”. This resonates with the previous view that the SEC had for rejecting the Bitcoin exchange-traded fund approval for over a decade.

Balchunas also anticipates all the spot Bitcoin exchange-traded funds to survive the current downturn and “be here this time next year”. This essentially shows the confidence in speculation of an upcoming bullish run in the segment.

Blackrock and Fidelity’s performance so far

According to reports, Blackrock’s IBIT drew more investment than any of its rivals in January, as evidenced by its net assets value, which stood at $3.12 billion. With a net asset value of $2.66 billion, Fidelity’s FBTC emerged second on the list.

With $20.39 billion worth of BTC held, Grayscale’s ETF is currently the biggest. However, although nine new spot ETFs attracted a lot of investment in January, GBTC has seen outflows totaling around $6 billion.

Bitcoin ETFs ascend with billions of inflows since debut

CoinGape previously reported that since its launch in US markets, the spot Bitcoin ETF has seen significant growth, with a total inflow of $1.55 billion. This flood of capital underscores investors’ increasing acceptance and interest in digital currencies.

After going live on January 11, the  ETFS had an incredible debut week, bringing in a net inflow of $1.06 billion. This strong start highlighted the ETF’s immediate appeal, as it accumulated more than 100,000 BTC in assets under management (AUM), which, when Grayscale’s Bitcoin Trust (GBTC) is excluded, is estimated to be worth US$4 billion.