In 2025, the BTC ETF may attract $35 billion in capital inflow, becoming the new favorite in Crypto ETFs?

CN
5 days ago

It is expected that BTC ETFs will attract over $70 billion in inflows in less than two years.

Source: cryptoslate

Translation: Blockchain Knight

Nate Geraci, CEO of ETF Store, emphasized that crypto asset-related ETFs will lead in inflows in 2024, with the largest 8 funds launched this year belonging to this sector.

This list includes four spot BTC ETFs, two Ethereum ETFs, and two MicroStrategy ETFs.

Over the past 12 months, these 8 funds have outperformed all approximately 740 ETFs.

BlackRock's spot BTC ETF IBIT recorded over $37 billion in positive net inflows in less than a year, ranking first.

IBIT also became the best-performing ETF ever launched, accumulating nearly $53 billion in assets under management (AUM) within 11 months.

Fidelity's spot BTC ETF FBTC ranks second with a total of $12.2 billion in inflows, while BlackRock's spot Ethereum ETF ETHA ranks third with $3.5 billion in positive net inflows.

This highlights the disparity in inflows between BTC and Ethereum ETFs, as the largest Ethereum ETF's inflow is 11 times lower than that of the largest BTC fund.

The other two BTC ETFs on the list are ARK 21shares' ARKB and Bitwise's BITB, which recorded inflows of $2.6 billion and $2.2 billion, respectively.

The first ETF related to MicroStrategy (YieldMax's MSTY) recorded the eighth-largest net inflow, close to $1.8 billion, followed by the second Ethereum ETF on the list (Fidelity's FETH) with slightly over $1.5 billion in net inflows.

Defiance's MSTX ranks in the top eight with $1.4 billion in inflows, becoming the second ETF related to MicroStrategy.

Analysts are optimistic about the prospects of U.S. crypto ETFs.

According to Bitwise, it is estimated that next year, BTC ETFs alone will attract $35 billion in inflows, accumulating over $70 billion in less than two years.

Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart expect a wave of new crypto asset-related ETFs to emerge next year.

Additionally, Geraci recently predicted that the regulatory environment will become more favorable for the industry in the coming months, making it possible for a Solana (SOL) ETF to be approved in 2025.

According to data from Farside Investors, from November 6 to December 27, the spot BTC ETFs traded in the U.S. recorded $12.1 billion in inflows, accounting for 34% of their inflows this year to date.

The impact on spot Ethereum ETFs is even more significant, as they recorded $3.2 billion in inflows during the same period. These inflows are sufficient to reverse the negative net flows of over $500 million for these funds, which currently total nearly $2.7 billion.

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