Half of the leading 20 exchange-traded funds (ETFs) in the United States are associated with digital assets, highlighting the sector’s increasing attractiveness to investors.
On Monday, ETF analyst Nate Geraci mentioned more than 1,300 ETFs have been introduced since the beginning of 2024, with crypto-linked assets dominating the top 20 investment vehicles in terms of inflows.
These encompass Bitcoin (BTC) and Ether (ETH) ETFs, funds tracking leveraged ETH positions, and Strategy (MSTR) exposure products.
Geraci shared insights revealing that the top four assets overall by inflows are crypto-related, including BlackRock’s iShares Bitcoin Trust ETF (IBIT), which is at the forefront with over $57.4 billion in inflows, surpassing others on the list.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) trailed with $12.1 billion, while the iShares Ethereum Trust (ETHA) attracted $9.6 billion.
The YieldMax MSTR Option Income Strategy ETF (MSTY), intended to generate monthly income through an options-writing strategy on MSTR stock, ranked among the top four with $7.2 billion in inflows.
Although the stock isn’t directly crypto-related, the firm is recognized for its Bitcoin treasury holdings.
Crypto-linked funds lead ETFs launched since 2024
The best-performing crypto ETFs feature five spot Bitcoin funds, two spot Ether funds, two strategy-oriented ETFs, and one leveraged ETH ETF.
Beyond the top four, the ARK 21Shares Bitcoin ETF (ARKB), the Bitwise Bitcoin ETF Trust (BITB), and the Fidelity Ethereum Fund ETF (FETH) occupied the 11th, 12th, and 13th positions, respectively, each with inflows exceeding $2.2 billion.
Furthermore, the Grayscale Bitcoin Mini Trust ETF (BTC), 2x Ether ETF (ETHU), and Defiance Daily Target 2x Long MSTR ETF (MSTX) secured the 18th, 19th, and 20th positions, respectively, each attracting over $1.5 billion in inflows.
The surge in crypto-linked ETFs indicates investor demand for regulated, exchange-traded exposure to digital assets, a realm historically dominated by more intricate investment strategies.
Related: Michael Saylor isn’t concerned about the emergence of Ethereum treasury firms
Spot Ether ETFs achieve new peaks
As cryptocurrency leads exchange-traded products, spot Ether ETFs register new record inflows as their underlying asset trends bullish.
In July, spot ETH ETFs documented $5.4 billion in monthly inflows, a new peak for ETH-based investment products. This was accompanied by a 20-day streak of consistent inflows for spot Ether ETFs. However, this pattern broke in August, when ETFs experienced their first outflows since the new record.
Nevertheless, spot ETH ETFs showed no signs of slowing down, posting $1 billion in inflows on Monday, marking a new daily record for the investment vehicles.
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