The rise of cryptocurrency-related exchange-traded funds (ETFs) is reshaping the investment landscape, with nearly 40% of the top 50 best-performing ETFs of 2024 directly linked to digital assets. This surge attests to the burgeoning interest in the crypto space, positioning these ETFs as central players in the investment arena.
The data, shared by ETF expert Nate Geraci in a November 12 post, reveals that 19 out of the 610 funds launched this year are tied directly to Bitcoin (BTC), Ethereum (ETH), or are associated with companies like MicroStrategy that hold substantial crypto assets. This tally, notably, includes 12 of the top 20 products, with these crypto ETFs collectively attracting billions of dollars.
Among these, BlackRock’s iShares Bitcoin Trust (IBIT) stands out, registering a staggering $24.7 billion in year-to-date (YTD) inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares ARKB fund follow, with net YTDs of $10.75 billion and $2.6 billion respectively.
The first non-crypto fund, the PGIM Ultra Short Municipal Bond ETF, takes the fourth spot, having attracted nearly $2.47 billion in YTD inflows. Bitwise’s BITB completes the top five, with inflows exceeding $2.3 billion since the start of the year.
In sixth place, we find the first Ethereum ETF on the list, BlackRock’s iShares Ethereum Trust (ETHA), which has garnered over $1.4 billion since its July launch. Furthermore, four other ETH-based ETFs feature in the top 50, collectively accumulating flows surpassing $2.8 billion. This continued investor interest underscores Ethereum’s steady allure, despite these products’ relatively recent introduction to the market.
Crypto ETFs’ overall value has also benefitted from the inclusion of several MicroStrategy-linked funds. Among these, the YieldMax MSTR Option Income Strategy stands out with more than $750 million in holdings, followed by the T-Rex 2X Long MSTR Daily Target ETF, valued at over $534 million. With more than 279,000 BTC in its portfolio, currently valued at approximately $24 billion, MicroStrategy has firmly established itself as the world’s largest corporate holder of Bitcoin.
Beyond these high-profile funds, smaller yet influential ETFs are also making their mark. The VanEck Bitcoin ETF (HODL), the ProShares Ultra Bitcoin ETF (BITU), and Coinshares’ Valkyrie offering, BRRR, have attracted $710 million, $696 million, and $551 million respectively. Their performance has outshone many traditional financial products, including the likes of Vanguard’s California Tax-Exempt Bond fund.
The rise of crypto ETFs signals a shifting paradigm in the investment world, with digital assets becoming an increasingly prominent part of investors’ portfolios. As we look ahead, the continued growth and performance of these funds will undoubtedly be a trend to watch.
