Bitcoin and Ethereum Dominate New ETF Launches, Occupying 13 of the Top 25 Spots

• 13 of 25 top ETFs in 2024 link to Bitcoin or Ethereum, highlighting crypto’s growing appeal in traditional finance.
• BlackRock’s IBIT leads with $21.53B inflows, dominating the newly launched ETFs focused on cryptocurrency.
• Franklin Templeton eyes SEC approval for a new ETF tracking Bitcoin and Ethereum, aiming for indirect crypto exposure.

The newly launched products of the exchange-traded funds show that 13 of the 25 most profitable ones are linked to Bitcoin and Ethereum indirectly or directly in 2024. 

Co-founder of the ETF Institute, Nate Geraci, provided a detailed breakdown of these digital asset ETFs and pointed to the clear industry monopoly of such products. This count even extends to 14, considering the inclusion of the MSTR Option Strategy ETF, known for its partial exposure to cryptocurrencies.

The dominance of crypto-related ETFs is an undeniable testament to the increasing investor appetite for digital assets, despite earlier skepticism regarding their demand. BlackRock’s iShares Bitcoin Trust ETF (IBIT) has emerged as a leader with $21.53 billion in year-to-date inflows. 

This ETF is closely followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $9.48 billion, and ARK Invest’s collaboration with 21shares on the ARKB, which amassed $2.36 billion in inflows.

Performance and Trends in Crypto ETFs

While Bitcoin-related ETFs have seen substantial inflows, their Ethereum counterparts are also marking their presence known in the industry. The iShares Ethereum Trust ETF (ETHA) leads among Ethereum ETFs with $1.15 billion in year-to-date inflows.

Following closely is Fidelity’s Ethereum Fund ETF (FETH), which has garnered $453.66 million. The data underscores a robust interest in Ethereum-related investment products, though they trail the inflow volumes seen by their Bitcoin-focused counterparts.

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Additionally, the introduction of these ETFs has significantly influenced the total managed crypto assets, with 12 U.S. spot Bitcoin ETFs collectively attracting approximately $18.47 billion in net inflows since the beginning of the year. In contrast, nine U.S. spot Ether funds have experienced a total outflow of $561.05 million, reflecting a more cautious investor approach towards Ether amidst varying market conditions.

Emerging Developments in the ETF Landscape

Due to high interest from investors seeking diversified crypto investments, Franklin Templeton investment firm has sought SEC permission to list a Bitcoin and Ethereum Index ETF. 

This proposed ETF is supposed to track an index that captures the price changes of both bitcoins and Ethereum on a daily basis, which will allow investors to speculate on these two biggest cryptocurrencies without investing in the actual tokens directly.