Crypto Leads the Charge in 2024’s Largest ETF Launches: The ETF Store

In 2024, cryptocurrency exchange-traded funds (ETFs) have taken the investment world by storm, dominating the largest ETF launches of the year. According to Nate Geraci, president of The ETF Store, a leading investment adviser specializing in ETFs, crypto ETFs account for 13 of the top 25 fund launches by year-to-date inflows. This significant presence underscores the growing interest and adoption of digital assets in mainstream finance.

Out of approximately 400 new ETFs launched in 2024, the four largest by inflows have all been spot Bitcoin ETFs. Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed nearly $21 billion in inflows to date, making it the top-performing ETF of the year. Following closely is Fidelity’s Wise Origin Bitcoin Fund (FBTC) with nearly $10 billion in net inflows, while ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB) each garnered around $2 billion in net inflows.

The rise of cryptocurrency ETFs isn’t limited to Bitcoin alone. The iShares Ethereum Trust ETF (ETHA) has also made a significant impact, leading the Ether ETFs with over $1 billion in net inflows, having crossed this milestone in August, according to data from Morningstar.

In total, net assets in spot Bitcoin and Ether ETFs have surpassed $60 billion, a clear indication of the massive adoption and investor interest in these digital assets. This trend is expected to continue as the market for cryptocurrency ETFs expands to include new types of digital assets and diversified crypto indexes.

Dave LaValle, global head of ETFs at Grayscale Investments, highlighted this growing momentum, stating that the market will see more single-asset products and diversified offerings in the near future. Numerous other crypto ETFs, including Solana ETFs and diversified crypto indexes like the Hashdex Nasdaq Crypto Index ETF, are currently seeking regulatory approval, further expanding the scope of crypto investments.

The explosive growth of spot crypto ETFs in 2024 has already exceeded more than three times the largest one-year inflow of any ETF in history, marking a pivotal moment in the evolution of the ETF market. As digital assets continue to gain traction, the landscape of traditional finance is set to be reshaped by the increasing integration of cryptocurrencies into mainstream investment products.