Fidelity Tops BlackRock in BTC ETF Inflows Surge

Fidelity’s BTC ETF Outpaces BlackRock in Inflows, but Broader Demand Slows Bitcoin Rally

Fidelity Outshines BlackRock in Latest BTC ETF Surge—But Why Bitcoin Might Still Stall

U.S. spot Bitcoin (BTC) ETFs are back in the spotlight, posting a massive $601.94 million in net inflows on July 3rd—marking the second-largest daily intake since their launch. However, the most notable shift is the aggressive demand tilt toward Fidelity’s ETF (FBTC) over industry giant BlackRock’s IBIT.

According to SoSo Value, Fidelity led the inflow charts with $237.13 million, slightly outpacing BlackRock’s $224.53 million on the same day. This marks a continued trend, as FBTC also dominated inflows on July 2nd, absorbing $183 million of that day’s $408 million in total ETF purchases.

FBTC vs. IBIT: The New Rivalry in BTC ETF Flows

Fidelity’s FBTC has made considerable strides in Q2, with sustained institutional inflows pushing its BTC holdings to 199,493 BTC by July 4th. At current market prices, that represents:

$22 billion in net assets1.02% of total BTC supply

While BlackRock’s IBIT still leads in total BTC holdings—with 692,887 BTC (3.3% of supply)—Fidelity is rapidly closing the gap in short-term inflow momentum.

BTC Holdings as of July 4th:

IBIT (BlackRock): 692,887 BTC

FBTC (Fidelity): 199,493 BTC

Institutional Demand Surges in Q2—Led by ETFs & Treasuries

The rise of FBTC comes amid a broader Q2 surge in institutional Bitcoin accumulation:

ETFs acquired 111,411 BTC in Q2, growing their stash by 8%
Public companies, led by Strategy (formerly MicroStrategy), bought 131,000 BTC, growing their corporate holdings by 18%

This dual force from both ETFs and public treasuries has absorbed 748,000 BTC in 2024 so far—more than 3.5% of total Bitcoin supply.

IBIT Still Attracts More Institutions

Despite FBTC’s inflow dominance in early July, BlackRock’s IBIT continues to lead in institutional holder growth.

According to Fintel data, IBIT saw a 9% rise in institutional holders in early Q3, while FBTC only grew 2.6%. This suggests that larger players like hedge funds and family offices still favor BlackRock’s broader reach and established trust.

Institutional Holder Growth (Early Q3):

IBIT: +9%

FBTC: +2.6%

That said, total institutional capital allocation dropped slightly at the start of Q3—likely due to quarter-end rebalancing or risk diversification.

ETFs Are Buying, But Broader Demand Is Slipping

BlackRock Bitcoin ETF Tops S&P Fund in Revenue Shift

While Fidelity and BlackRock continue to buy aggressively, CryptoQuant warns of a concerning trend: broader Bitcoin demand is shrinking.

Despite 748,000 BTC bought by ETFs and Strategy, overall apparent demand has declined to 857,000 BTC, reflecting a contraction in retail and non-institutional demand.

CryptoQuant Insight: “ETF and MSTR purchases are a portion of Bitcoin demand. The overall demand contraction is more than offsetting these buys. Acceleration in total demand is what drives new highs.”

In essence, while ETFs absorb supply, they aren’t triggering new capital inflows at scale. This suggests that demand from global traders, whales, and retail investors is currently underwhelming—potentially capping upside momentum in the short term.

Bitcoin Price Reaction: Rally Stalls at $110.5K

Bitcoin (BTC) reached $110.5K on July 3rd, but has since retraced to $108.8K, indicating resistance at key psychological and technical levels.

While institutional accumulation remains bullish for long-term fundamentals, the short-term price outlook may be limited by macroeconomic uncertainty, lack of retail FOMO, or profit-taking near highs.

TL;DR – Key Takeaways

Fidelity’s FBTC is gaining ground, leading recent ETF inflowsInstitutional demand remains strong, especially from public firmsRetail/organic demand is lagging, weakening overall market momentumBTC may struggle to set new ATHs without broader market participationPrice pulled back from $110.5K to $108.8K

Final Thoughts

Fidelity's recent surge in Bitcoin ETF inflows signals growing institutional confidence, possibly sparked by its reputation and diversified offerings. Yet, the broader market remains hesitant, with retail investors and whales seemingly waiting on the sidelines.

While ETFs provide strong structural support for Bitcoin's price floor, fresh all-time highs will likely require a broader market revival—one driven by macro clarity, FOMO, or a new narrative spark.

For now, Bitcoin holds firm above $100K, but the next leg up will depend on more than ETF flows. Watch for retail inflow upticks, macro signals, and overall crypto market sentiment to confirm the next bull phase.