BlackRock Inc.’s Bitcoin exchange-traded fund passed $1 billion in investor inflows, making it the first in the group of nine new ETFs directly holding the cryptocurrency to surpass the milestone since the funds started trading last week. Investors deposited $371 million in the fund on Wednesday, pushing IBIT past the milestone, data compiled by Bloomberg show. Fidelity Investments is close behind. The company’s FBTC Bitcoin ETF saw $358 million in inflows yesterday — the highest single day tally since the fund launched a week ago. In total, about $880 million have flowed into Fidelity’s fund. BlackRock and Fidelity have driven early consolidation in the new asset, with the two firms receiving 68% of all inflows across the nine new ETFs on the market, totaling nearly $2 billion. “Considering it’s BlackRock, I don’t think that’s surprising – they have the resources,” said Todd Sohn, an ETF strategist at Strategas. “But it shows how serious they are about this as an asset class. There’s too much opportunity to not have some power behind the launch.” A significant portion of inflows are coming from investors leaving Grayscale Investment’s GBTC fund after the U.S. Securities and Exchange Commission approved the ETFs, according to Bloomberg Intelligence. Grayscale’s Bitcoin Trust, which was created in 2013, had over $28 billion in assets under management when it converted to an ETF, but has seen about $1.6 billion in outflows since trading started. Grayscale’s Bitcoin ETF has a sector-high management fee of 1.5%. Management fees at BlackRock and Fidelity are a fraction of GBTC’s cost, but they do not have the lowest fees in the group of new Bitcoin ETFs — that title goes to Franklin Templeton with its 0.19% management fee. Despite its industry-low fee, Franklin has received less than 2% of inflows across the broader Bitcoin ETF group.

Full report : BlackRock’s Bitcoin ETF passes $1 billion in investor inflows, with $358 million in inflows on January 17; Fidelity is close behind with about $880M in assets.