Revolutionizing the ETF Industry: Crypto Funds Take the Lead
In 2024, crypto-related exchange-traded funds (ETFs) emerged as the top performers in terms of inflows, with the eight largest funds launched belonging to this sector, as highlighted by The ETF Store CEO Nate Geraci.
The Top Performers
- Four spot Bitcoin (BTC) ETFs
- Two Ethereum (ETH) ETFs
- Two MicroStrategy ETFs
These eight funds outperformed all of the approximately 740 ETF launches over the past year.
Leading the Pack
BlackRock’s spot Bitcoin ETF, IBIT, secured the top spot with over $37 billion in positive net flows within a year, making it the best ETF debut in history. The fund accumulated nearly $53 billion in assets under management (AUM) in just 11 months.
Following Closely
Fidelity’s spot Bitcoin ETF, FBTC, came in second with total inflows of $12.2 billion, while BlackRock’s spot Ethereum ETF ETHA claimed the third spot with $3.5 billion in positive net flows.
Bitcoin vs. Ethereum
The disparity between Bitcoin and Ethereum ETFs is evident, with the largest Ethereum ETF witnessing inflows that are 11 times lower than the leading Bitcoin fund.
Other Notable Performers
- ARK 21shares’ ARKB recorded inflows of $2.6 billion
- Bitwise’s BITB saw inflows of $2.2 billion
- YieldMax’s MSTY, the first MicroStrategy-related ETF, attracted nearly $1.8 billion in net flows
- Fidelity’s FETH, the second Ethereum ETF on the list, recorded over $1.5 billion in net flows
- Defiance’s MSTX, another MicroStrategy-related ETF, received $1.4 billion in inflows
The Future Outlook
Analysts are bullish on the future of crypto ETFs in the US, with projections indicating that Bitcoin ETFs could attract $35 billion in inflows next year and surpass $70 billion cumulatively in less than two years.
Bloomberg ETF analysts anticipate a wave of new crypto-related ETFs in the upcoming year. Moreover, regulatory developments are expected to favor the sector, potentially leading to the approval of a Solana (SOL) ETF in 2025.
Recent data from Farside Investors reveals significant inflows into US-traded spot Bitcoin and Ethereum ETFs, indicating a growing interest in these investment vehicles.
References:
https://www.bloomberg.com/news/articles/2024-12-30/blackrock-s-bitcoin-fund-became-greatest-launch-in-etf-history
https://x.com/MilkRoadDaily/status/1873749680070496705
https://x.com/NateGeraci/status/1873551012340093108
