As the year 2024 comes to a close, BlackRock’s iShares Bitcoin Trust (IBIT) has cemented its position as the leading Bitcoin exchange-traded fund (ETF). According to data from Farside Investors, IBIT attracted more than $37 billion in net inflows during 2024, surpassing its competitors and solidifying BlackRock’s dominance in the market.
Bitcoin ETF Inflows Exceed Expectations
Fidelity Wise Origin Bitcoin Fund (FBTC) took second place with nearly $12 billion in net inflows this year. While impressive, this figure is still significantly lower than IBIT’s remarkable achievement. Farside Investors noted that Fidelity is a closer second to BlackRock, accounting for 44% of the total net inflows, compared to 31% for Bitcoin.
Fidelity Falls Short
Fidelity Ethereum Fund (FETH) also made an impressive showing with $1.5 billion in net inflows during 2024. While this is a respectable figure, it still falls short of BlackRock’s iShares Ethereum Trust (ETHA), which pulled in $3.5 billion.
US Bitcoin ETFs See Significant Growth
The overall picture for US Bitcoin ETFs looks promising. With more than $35 billion in aggregate net inflows for the year, this market segment has seen significant growth. When factoring in the nearly $20 billion in net outflows from Grayscale Bitcoin Trust (GBTC), the figure equates to roughly $144 million in net inflows each trading day.
Grayscale’s GBTC Still Struggling
Despite its long history and initial success, Grayscale’s GBTC has struggled to maintain investor interest. Launched in 2013 as a non-listed trust, GBTC charges management fees of 2.5%, which may be contributing to the decline in net inflows.
A Cheaper Alternative Emerges
In July, Grayscale listed Grayscale Bitcoin Mini Trust (BTC) as a cheaper alternative. With annual management fees of 0.15%, this new offering may appeal to investors looking for more cost-effective options.
Bitcoin ETF Dominance
The success of US Bitcoin ETFs can be attributed in part to the market’s surge following Donald Trump’s victory in the 2024 US presidential election. Many believe that his win will benefit the industry, leading to increased investment and adoption.
Record-Breaking Milestone
On November 21st, US Bitcoin ETFs broke $100 billion in net assets for the first time, according to data from Bloomberg Intelligence. This milestone marks a significant achievement for the market and highlights its growing importance.
Spot BTC ETFs Lead the Pack
Among the approximately 400 new ETFs launched in 2024, the four biggest launches by inflows have all been spot BTC ETFs, said Nate Geraci, president of The ETF Store. This dominance is a testament to the continued appeal and demand for Bitcoin-based investment products.
Stablecoins Threaten Bitcoin Payments
As the adoption of cryptocurrency continues to grow, concerns are being raised about the impact of centralized stablecoins on Bitcoin payments. Magazine: Bitcoin payments are being undermined by centralized stablecoins.
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About Farside Investors
Farside Investors is a leading provider of data and analysis for the cryptocurrency market. Their research and insights have become essential tools for investors, analysts, and industry professionals looking to stay ahead in the rapidly evolving landscape.
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