- Spot Bitcoin ETFs have generated net inflows of $13.8 billion since inception in January
- Heightened institutional appetite and elevated consumer interest are behind the gain
- BlackRock iShares Bitcoin Trust is the top-performing ETF with $16.6B in net new money
Spot Bitcoin ETFs Pull In $13.8 Billion Net Inflow
Spot Bitcoin exchange-traded funds (ETFs) are doing numbers, and money managers are noticing. The new investment vehicles have attracted $13.8 billion in net inflows, or the money coming in after the money that has exited.
The hefty figure is an indication of the increasing appetite of institutional investors and retail consumers to own a piece of the biggest digital currency. However, the net new money piling in is not evenly distributed across the involved players.
BlackRock Takes the Crown
Presently, there are 11 spot Bitcoin exchange-traded funds issued and packaged by different fund managers. The biggest one — iShares Bitcoin Trust by BlackRock, the world’s largest asset manager — has drawn $16.6 billion since its inception in January. On the other end of the spectrum is Grayscale, which converted its Bitcoin trust into a Bitcoin ETF. Net outflows for Grayscale have climbed to $17.9 billion since rollout.
The launch of these 11 spot Bitcoin ETFs set off a monster rally that is still buoying digital assets near record. Bitcoin, for one, hit an all-time high of over $73,000 per token in mid-March.
What’s a Spot Bitcoin ETF?
Spot Bitcoin ETF is a new type of investment product, which holds genuine Bitcoin and trades alongside stocks, bonds, and other regulated asset classes. Thus, investors who buy into it own a piece of the underlying asset, i.e. Bitcoin. That’s why the launch in the US generated such a massive buying wave.
In contrast, futures-based Bitcoin ETFs, which have existed for a while, offer futures contracts tied to the cryptocurrency instead of the actual digital asset.
Ethereum ETFs Pending Launch
The institutional crypto landscape is about to get even more crowded and exciting. The Securities and Exchange Commission, America’s top cop, is looking to approve eight spot Ethereum exchange-traded funds.
The products, issued by a diverse group of asset managers, will lower the entry barrier for people who want to invest in the second-largest cryptocurrency. What’s more, it will provide regulated access for institutional players to invest in the volatile asset.