Recent data shows that demand for crypto-related ETFs is stronger than expected.
Nate Geraci, President of The ETF Store, Inc., recently criticized claims that there is limited demand for crypto-related ETF products, providing evidence that highlights important trends. As Geraci pointed out, some of the best-performing ETFs launched in 2024 are related to crypto assets, demonstrating strong market demand for exposure to digital assets.
Of the 525 exchange-traded funds (ETFs) launched in 2024, 13 of the top 25 are directly tied to either Bitcoin or Ethereum, according to Geraci. This number increases to 14 when you factor in MicroStrategy’s MSTR Option Strategy ETF. This also includes exposure to digital assets.
ETF launch performance in 2024
Bitcoin ETFs will dominate in 2024
The top four ETFs of 2024 are all related to Bitcoin, while five of the top seven ETFs are related to other prominent crypto assets. Leading the way is the iShares Bitcoin Trust ETF (IBIT), which posted the highest year-to-date (year-to-date) inflows of $21.5 billion.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) secured second place with $9.84 billion in inflows. The ARK 21Shares Bitcoin ETF (ARKB) followed suit, with year-to-date inflows of $2.63 billion. Bitwise Bitcoin ETF Trust (BITB) rounded out the top four with $2.1 billion.
Ethereum-related ETFs gain momentum
Bitcoin ETFs are leading the way in terms of overall inflows, but Ethereum-focused ETFs are also gaining traction. The iShares Ethereum Trust ETF (ETHA) is the best performing Ethereum-related ETF, with an impressive $1.15 billion in inflows year-to-date.
Fidelity’s Ethereum Fund ETF (FETH) followed with total inflows of $453.66 million. This growth highlights the growing interest in Ethereum-related products, even though it lags behind Bitcoin in overall performance.
Franklin Templeton applies for cryptocurrency index ETF
In a related development, asset management giant Franklin Templeton has applied to the U.S. Securities and Exchange Commission (SEC) for approval to launch an ETF targeting both Bitcoin and Ethereum. If approved, the Franklin Templeton Bitcoin and Ethereum Index ETF will offer investors the opportunity to gain exposure to the top two cryptocurrencies by market capitalization.
This ETF is designed to track the performance of an index that reflects the price movements of Bitcoin and Ethereum. Because the fund does not need to directly hold the crypto assets themselves, investors can indirectly profit from movements in these assets.
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