FBTC ETF

Bitcoin's network usage has fallen in recent months as measured by daily active addresses, transaction fees, and broad wallet address growth. Network usage declines of this magnitude have historically come during Bitcoin's euphoric phase at the end of halving cycle rallies. Demand from spot ETFs and public companies like MicroStrategy does not appear to be slowing down. Year to date, Bitcoin has accounted for 82% of digital asset capital flow.

Fidelity's Wise Origin Bitcoin ETF offers superior Bitcoin exposure and minimizes security risks by using in-house custodial services, unlike most other Bitcoin ETFs. FBTC provides maximum Bitcoin exposure per share, outperforming peers, making it a top choice for investors seeking Bitcoin exposure through ETFs. The fund's shares outstanding are managed well versus Fidelity's Bitcoin treasury making this a superior ETF compared to other Bitcoin ETFs.

With Bitcoin surpassing $100,000, the Fidelity Wise Origin Bitcoin Fund is among the most prominent ETFs approved in 2024. I compare this fund to the iShares Bitcoin Trust ETF. FBTC boasts strong marketing support from Fidelity, a competitive 0.25% expense ratio, and AUM of $19.63 billion. However, its liquidity lags behind IBIT, with a higher average bid/ask spread. IBIT benefits from a "virtuous cycle," where its superior liquidity attracts frequent traders, enhancing its spread. In contrast, FBTC experiences a "vicious cycle," with declining trading activity.

Recent USDJPY carry trade sell-off highlighted liquidity risks, but Bitcoin's recovery indicates market overreaction. A repeat of the situation doesn't look likely as it won't come as such a big surprise. Bitcoin is consolidating near its all-time high, showing a bullish cup and handle pattern. A breakout should be setting up into the end of the year.

Spot Bitcoin ETFs have seen impressive inflows and institutional investments since launch, with daily inflows majorly outpacing the total daily produced BTC on the Bitcoin network since the halving. Fidelity's Wise Origin Bitcoin Fund ETF stands out with experience in crypto-focused products, self-custody, low expense ratio, and strong infrastructure for Bitcoin investing. FBTC is emerging as a leader in inflows among spot Bitcoin ETFs, as its low fees, decent liquidity and high on-chain BTC balance attract ample investments into the fund.

Bullish investor sentiment for bitcoin appeared to taper at the midyear point as volatility spiked. Fidelity's digital asset research director dove into the most prominent trends to watch regarding bitcoin at the midyear point.

During LSEG Lipper's fund flows week that ended June 19, 2024, investors were overall net redeemers of fund assets for the first week in three, removing a net $30.0 billion. Taxable bond funds, alternative investments, and tax-exempt bond funds posted net inflows. Conventional equity funds posted a weekly return of positive 0.19%, the third straight week of gains.

As the demand for Bitcoin's limited supply increases, spot Bitcoin ETFs offer opportunities for aspiring millionaires.