ETF Dominance Continues with BlackRock at the Helm
According to data from Farside Investors, BlackRock’s iShares Bitcoin Trust (IBIT) has clocked over $37 billion in net inflows during 2024, outperforming its competitors. This impressive figure not only surpasses that of runner-up Fidelity Wise Origin Bitcoin Fund (FBTC), which attracted nearly $12 billion in net inflows this year but also sets a new benchmark for the industry.
BlackRock’s Dominance in Bitcoin ETFs
As the world’s largest asset manager, BlackRock has consistently demonstrated its prowess in the realm of exchange-traded funds (ETFs). Its iShares Bitcoin Trust (IBIT) has led the pack among Bitcoin ETFs, pulling in a staggering $37 billion in net inflows during 2024. This figure is not only impressive but also underscores the trust and confidence investors have placed in BlackRock’s products.
Fidelity Wise Origin Bitcoin Fund: A Close Second
While Fidelity Wise Origin Bitcoin Fund (FBTC) may have trailed behind its competitor, it still managed to attract nearly $12 billion in net inflows during 2024. This is a testament to the growing demand for cryptocurrency-based ETFs and the increasing competition among asset managers.
The Rise of Ether ETFs
But BlackRock’s dominance doesn’t stop at Bitcoin ETFs alone. Its iShares Ethereum Trust (ETHA) also pulled $3.5 billion in net inflows during 2024, according to Farside Investors. This is a notable achievement considering the relatively smaller market size of the Ethereum ecosystem compared to Bitcoin.
Fidelity Ethereum Fund: A Strong Contender
In second place among Ether ETFs was the Fidelity Ethereum Fund (FETH), which attracted $1.5 billion in net inflows during 2024. While this may not be as impressive as BlackRock’s figures, it still demonstrates the growing interest in alternative cryptocurrencies and the increasing demand for diversified investment options.
The Net Inflow Picture: A Closer Look
According to Farside Investors, the United States Bitcoin ETFs saw more than $35 billion in aggregate net inflows during 2024. This translates to approximately $144 million in net inflows each trading day, a staggering figure that underscores the growing popularity of cryptocurrency-based ETFs.
Grayscale’s GBTC: A Notable Exception
One notable exception to this trend is Grayscale’s Bitcoin Trust (GBTC), which saw more than $20 billion in net outflows during 2024. Launched in 2013 as a non-listed trust, Grayscale listed its GBTC in July with management fees of 2.5%. This may have contributed to the decrease in net inflows.
A Cheaper Alternative: Grayscale Bitcoin Mini Trust (BTC)
In an effort to stem this decline, Grayscale introduced the Grayscale Bitcoin Mini Trust (BTC) in July with management fees of 0.15% annually. While this is a more cost-effective option compared to GBTC, it remains to be seen whether it will be able to reverse the trend.
Bitcoin ETF Dominance
The dominance of Bitcoin ETFs has been a defining feature of 2024. According to Nate Geraci, president of The ETF Store, six out of the top 10 most successful launches this year were spot BTC ETFs. This is a testament to the growing demand for cryptocurrency-based investment products and the increasing competition among asset managers.
The Four Biggest Launches by Inflows
In September, Geraci noted that the four biggest launches by inflows in 2024 have all been spot BTC ETFs. This underscores the growing popularity of Bitcoin ETFs and the increasing demand for diversified investment options.
A New Era for Cryptocurrency-Based ETFs
As the world’s largest asset manager continues to lead the pack among Bitcoin ETFs, one thing is clear: the era of cryptocurrency-based ETFs has finally arrived. With BlackRock at the helm, investors can expect even more innovative products and services in the coming years.
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