Crypto ETFs dominate prime fund launches in 2024, led by record-breaking Bitcoin inflows

The ETF Retailer CEO Nate Geraci highlighted that crypto-related exchange-traded funds (ETFs) led inflows in 2024, with the eight largest funds launched this 12 months belonging to the sector.

The listing consists of 4 spot Bitcoin (BTC) ETFs, two Ethereum (ETH) ETFs, and two MicroStrategy ETFs. The eight funds outperformed all the roughly 740 ETF launches over the previous 12 months.

BlackRock’s spot Bitcoin ETF, IBIT, took the highest spot with over $37 billion in constructive internet flows recorded in lower than a 12 months. It additionally grew to become the best ETF debut in history, with almost $53 billion in property below administration (AUM) gathered in 11 months.

Fidelity’s spot Bitcoin ETF, FBTC, is available in second with inflows totaling $12.2 billion, whereas BlackRock’s spot Ethereum ETF ETHA is in third place with $3.5 billion in constructive internet flows.

This highlights the discrepancy between Bitcoin and Ethereum ETFs concerning flows, because the inflows of the most important Ethereum ETF are 11x decrease than these of the most important Bitcoin fund.

The 2 different Bitcoin ETFs on the listing are ARK 21shares’ ARKB and Bitwise’s BITB, which recorded inflows of $2.6 billion and $2.2 billion, respectively.

The primary MicroStrategy-related ETF, YieldMax’s MSTY, recorded the eighth-largest internet flows, nearing $1.eight billion, adopted by the second Ethereum ETF on the listing — Constancy’s FETH — which recorded a bit of over $1.5 billion in internet flows.

Defiance’s MSTX wraps up the highest eight because the second MicroStrategy-related ETF, with $1.four billion in inflows.

Only the start

Analysts are optimistic about the way forward for crypto ETFs within the US. Bitwise estimates that Bitcoin ETFs alone will entice $35 billion in inflows subsequent 12 months, surpassing $70 billion cumulatively in lower than two years.

In the meantime, Bloomberg ETF analysts Eric Balchunas and James Seyffart count on a wave of new crypto-related ETFs subsequent 12 months. Moreover, Geraci recently predicted that the regulatory panorama is about to grow to be extra favorable for the sector within the coming months, which makes the approval of a Solana (SOL) ETF in 2025 possible.

Based on Farside Investors’ data, US-traded spot Bitcoin ETFs registered $12.1 billion in inflows from Nov. 6 to Dec. 27, representing 34% of their year-to-date flows.

The affect was much more important on spot Ethereum ETFs, which registered $3.2 billion in inflows in the identical interval. The capital flows have been sufficient to reverse over $500 million in unfavorable internet flows from these funds, now totaling almost $2.7 billion.