Crypto funds dominate new ETFs
Growing popularity of cryptocurrency ETFs
The launch of spot Bitcoin ETFs and Ethereum ETFs in the United States this year has significantly reshaped the exchange-traded fund (ETF) market. Of the 740 new ETFs introduced in 2024, crypto funds claimed the top eight positions by inflows, highlighting their growing popularity.
As reported by CoinGape, this trend gained momentum following Donald Trump’s victory in the U.S. elections, driven by expectations of crypto-friendly policies and plans to establish a strategic Bitcoin reserve.
Nate Geraci, President of the ETF Store, noted that the eight most successful ETF launches this year are tied to digital assets. These include four spot Bitcoin ETFs, two Ethereum ETFs, and two ETFs tracking MicroStrategy (MSTR) stocks, reflecting the rising interest in cryptocurrencies.
The most popular funds
BlackRock’s IBIT and ETHA products are particularly popular, as are the ETFs tracking MicroStrategy stocks, thanks to the company’s strong performance and inclusion in the Nasdaq 100 index.
Last week, spot Bitcoin ETFs recorded a net outflow of $388 million due to profit-taking and portfolio rebalancing. However, Fidelity’s Bitcoin ETF (FBTC) attracted $183 million in net inflows during the same period, signaling continued investor interest. The total net asset value (NAV) of spot Bitcoin ETFs now stands at $106.7 billion.
During the same period, Ethereum ETFs saw net inflows totaling $349 million, with significant contributions from BlackRock’s ETHA and Fidelity’s FETH funds, which brought in $182 million and $160 million, respectively.
Meanwhile, the BlackRock Institutional Bitcoin Trust (IBIT) now holds an impressive 552,555 BTC, significantly outpacing the Grayscale Bitcoin Trust (GBTC), which holds 206,860 BTC.
