Spot Bitcoin BTC/USD ETF and spot Ethereum ETH/USD ETF are amongst the top four global ETFs, spotlighting investors’ confidence in the crypto sector.
What Happened: Nate Geraci, ETF Store President, noted that BlackRock’s iShares Bitcoin ETF IBIT has accumulated around $20.5 billion in assets under management in 2024. Four spot Bitcoin ETFs are among the top four launches of 2024.
Out of all the 375 new ETF launches in 2024, the next closest non-spot Bitcoin ETF stands records assets under management of $1.3 billion. The Global X Russell 2000 ETF ranks fifth.
Geraci also highlighted that despite Schwab being the fifth largest ETF issuer by assets under management today, the fund launched their 10th ETF since the start of 2014. He believes that Schwab should get more aggressive and think of including a spot Bitcoin ETF.
A recent Yahoo Finance Morning Brief highlighted that net ETF inflows in a challenging market environment are a good sign, with buyers showcasing “diamond hands.” Bitcoin ETFs recorded $38.94 million in net inflows on Aug.13.
Also Read: Enjoy Ethereum’s Rally While It Lasts, Warns 10x Research
Why It Matters: Since launching their respective spot ETFs, Ethereum has underperformed, as highlighted by a trader:
Crypto trader Kaleo noted that two weeks after Bitcoin spot ETF was launched, Bitcoin bottomed out and started its rally. However, the Ethereum ETF launch could not repeat the feat.
Crypto news provider Keyed In predicts institutional Bitcoin adoption to go parabolic as "after months of sidelining, Morgan Stanley green-lit over 15,000 advisors to pitch IBIT and FBTC to certain clients." Any higher-risk clients with more than 1.5 million can be pitched Bitcoin ETFs.
The tweet added, "Even a 1% allocation amongst their wealthiest clients would move the ETF needle tremendously."
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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