Demand for crypto-related ETFs is proving stronger than expected, according to recent data.
Nate Geraci, President of The ETF Store, Inc., recently criticized claims of limited demand for crypto-related ETF products, presenting evidence that highlights a significant trend. As Geraci pointed out, several of the top-performing ETFs launched in 2024 are tied to crypto assets, signaling a robust market appetite for digital asset exposure.
According to Geraci, out of the 525 exchange-traded funds (ETFs) launched in 2024, 13 of the top 25 are directly related to either Bitcoin or Ethereum. This figure increases to 14 when considering MicroStrategy’s MSTR Option Strategy ETF, which also has exposure to digital assets.
Bitcoin ETFs Dominate 2024
The top four ETFs for 2024 are all related to Bitcoin, while five of the top seven ETFs are tied to other prominent crypto assets. Leading the charge is the iShares Bitcoin Trust ETF (IBIT), which recorded the highest inflows, with $21.5 billion year-to-date (YTD).
Fidelity’s Wise Origin Bitcoin Fund (FBTC) secured the second spot, with an inflow of $9.84 billion. The ARK 21Shares Bitcoin ETF (ARKB) followed, amassing $2.63 billion in YTD inflow. Bitwise Bitcoin ETF Trust (BITB) rounded out the top four, garnering $2.1 billion.
Ethereum-Related ETFs Gain Traction
While Bitcoin ETFs lead in overall inflows, Ethereum-focused ETFs are also gaining traction. The iShares Ethereum Trust ETF (ETHA) is the top-performing Ethereum-related ETF, with a notable YTD inflow of $1.15 billion.
Fidelity’s Ethereum Fund ETF (FETH) follows with inflows totaling $453.66 million. This growth highlights an emerging interest in Ethereum-related products, even though they trail behind Bitcoin in overall performance.
Franklin Templeton Files for Crypto Index ETF
In a related development, Franklin Templeton, a major player in asset management, has applied to the U.S. Securities and Exchange Commission (SEC) for approval to launch an ETF that targets both Bitcoin and Ethereum. If given the green light, the Franklin Templeton Bitcoin and Ethereum Index ETF will provide investors with the opportunity to gain exposure to the top two crypto by market value.
This ETF is designed to track the performance of an index that reflects the price movements of Bitcoin and Ethereum. Investors would be able to benefit from the fluctuations of these assets indirectly, as the fund does not involve directly holding the crypto themselves.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
