Will BTC ETFs attract $35 billion in inflows by 2025, making Crypto ETFs the new favorite?
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Will BTC ETFs attract $35 billion in inflows by 2025, making Crypto ETFs the new favorite?
BTC ETF is expected to attract over $70 billion in inflows within less than two years.
Navigating Web3 tides with focused insightsSource: cryptoslate
Translation: Blockchain Knight
Nate Geraci, CEO of ETF Store, emphasized that ETFs related to crypto assets led all funds in capital inflows for 2024, with the eight largest funds launched this year all belonging to this sector.
The list includes four spot BTC ETFs, two Ethereum ETFs, and two MicroStrategy-related ETFs.
Over the past 12 months, these eight funds outperformed approximately 740 other ETFs combined.
BlackRock's spot BTC ETF IBIT recorded over $37 billion in positive net inflows within less than a year, ranking first.
IBIT also became the most successful ETF launch in history, amassing nearly $53 billion in assets under management (AUM) within 11 months.
Fidelity’s spot BTC ETF FBTC ranked second with a total inflow of $12.2 billion, while BlackRock’s spot Ethereum ETF ETHA ranked third with $3.5 billion in positive net inflows.
This highlights the disparity between BTC and Ethereum ETFs in terms of inflows, as the largest Ethereum ETF has seen inflows 11 times lower than the top BTC fund.
The other two BTC ETFs on the list are ARKB from ARK 21Shares and BITB from Bitwise, which recorded inflows of $2.6 billion and $2.2 billion respectively.
The first MicroStrategy-linked ETF (YieldMax's MSTY) recorded the eighth-largest net inflow at nearly $1.8 billion, followed closely by Fidelity’s Ethereum ETF FETH—the second Ethereum ETF on the list—with slightly over $1.5 billion in net inflows.
Defiance’s MSTX, with $1.4 billion in inflows, made it into the top eight, becoming the second ETF linked to MicroStrategy.
Analysts remain optimistic about the outlook for U.S. crypto ETFs.
According to Bitwise, BTC ETFs alone are expected to attract $35 billion in inflows next year, bringing cumulative inflows to over $70 billion within less than two years.
Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart anticipate a wave of new crypto-asset-related ETFs launching next year.
In addition, Geraci recently predicted that the regulatory environment will become more favorable for the industry in the coming months, making approval of a Solana (SOL) ETF possible in 2025.
According to data from Farside Investors, from November 6 to December 27, spot BTC ETFs traded in the U.S. recorded $12.1 billion in inflows, accounting for 34% of their year-to-date total inflows.
The impact on spot Ethereum ETFs was even more pronounced, with $3.2 billion in inflows during the same period. These inflows were sufficient to reverse the prior negative net flows exceeding $500 million, resulting in a current total of nearly $2.7 billion.
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