As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed the evolution of investment vehicles from traditional stocks and bonds to digital assets like Bitcoin (BTC) and Ethereum (ETH). The staggering net inflows into BlackRock’s iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) in 2024, outperforming their competitors, is a testament to the growing maturity and acceptance of digital assets in mainstream finance.
Having closely followed the crypto market since its inception, I must admit that the rapid growth of Bitcoin ETFs, particularly BlackRock’s dominance, has taken me by surprise. The success of these products highlights a shift in investor sentiment towards digital assets and their role in a diversified portfolio.
The surge in the crypto market following Donald Trump’s victory in the US presidential election in 2024 is an interesting phenomenon that I found intriguing. It underscores the interconnectedness of global financial markets and political events, something I have come to appreciate over my years of analyzing various asset classes.
The fact that Bitcoin has accounted for six of the top 10 most successful launches in 2024 is a clear indication of its growing influence. It’s fascinating to see how quickly digital assets are gaining traction, and I can’t help but wonder what the next 10 years will bring.
In a lighter vein, it seems that Grayscale’s GBTC charging management fees of 2.5% is a steep price to pay for early adoption in the digital asset space! But perhaps they’re just capitalizing on the FOMO (Fear Of Missing Out) of those who want a piece of the Bitcoin pie.
Joke: I guess we could call it “Grayscale’s premium service” – paying more to be an early bird, or in this case, early hodler!
In the year 2024, BlackRock’s Bitcoin (BTC) exchange-traded fund (ETF) saw over $37 billion in total investments, surpassing competitors like Fidelity in terms of inflows, as reported by Farside Investors.
The BlackRock iShares Bitcoin Trust (IBIT) has seen over three times as much investment compared to its closest competitor, the Fidelity Wise Origin Bitcoin Fund (FBTC), which received approximately $12 billion in investments this year, according to a post on the X platform dated December 31.
In 2024, the iShares Ethereum Trust (ETHA), managed by BlackRock – the world’s largest asset manager – saw a significant inflow of approximately $3.5 billion, making it the top Ether (ETH) ETF in terms of net inflows, as reported by Farside.
Fidelity Ethereum Fund (FETH) again notched second place, with $1.5 billion in net inflows.
In comparison, Fidelity stated that while Bitcoin has 31%, it lags behind by a significant margin as Fidelity holds about 44% more in total compared to Bitcoin.
As a seasoned crypto investor, I’ve noticed a significant impact on the market dynamics due to over $20 billion in net withdrawals from the Grayscale Bitcoin Trust (GBTC). This financial vehicle, which Grayscale introduced back in 2013 as an unlisted trust, has played a substantial role in our crypto investment landscape.
Grayscale’s GBTC has a management fee of 2.5%, but in July, they introduced Grayscale Bitcoin Mini Trust (BTC) as a more affordable option. This new trust comes with an annual management fee of only 0.15%.
Bitcoin ETF dominance
Bitcoin ETFs listed in the US in January after a lengthy tussle with regulators.
The cryptocurrency market experienced a rise after Donald Trump’s triumph in the U.S. presidential race, with experts at CryptoMoon Research suggesting that his victory could be advantageous for the industry.
For the very first time on November 21st, the combined net assets of U.S. Bitcoin Exchange-Traded Funds surpassed $100 billion, as reported by Bloomberg Intelligence’s data.
This year, Bitcoin has been the leading force in the ETF sector, making up six out of the ten most profitable launches in 2024, as stated by Nate Geraci, president of The ETF Store, on a recent post.
In 2024, about 400 new Exchange-Traded Funds (ETFs) were introduced, and it’s worth noting that the four largest fund launches, as measured by inflows, have all been related to Bitcoin spot ETFs, according to Geraci’s statement in September.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- DGB PREDICTION. DGB cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
2024-12-31 20:22