BlackRock, Fidelity dominance in spot BTC ETFs deepens

The U.S. spot Bitcoin ETF market has solidified into a two-horse race between BlackRock and Fidelity, CoinDesk reported. BlackRock's IBIT and Fidelity's FBTC are capturing the vast majority of new institutional fund inflows, while smaller ETFs have seen their market influence diminish significantly. On Jan. 14, for instance, IBIT and FBTC accounted for approximately $774 million of the total $840.6 million in net inflows, representing over 90% of the total, with a similar trend continuing through April and May. Even amid heightened market volatility, the two funds have maintained relatively robust capital flows. Analysts suggest that while the broader spot ETF market is under pressure from outflows as BTC has fallen around 29% year-to-date, investors are concentrating their capital in larger ETFs that offer superior liquidity and scale. Within this dynamic, IBIT is considered a core market product and the strongest channel for institutional capital.