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Spot Bitcoin (BTC) exchange-traded funds (ETF) IBIT and FBTC are among the top 20 by flows in 2024, amassing $49 billion and representing 4.3% of total flows, as highlighted by Bloomberg ETF analyst Eric Balchunas.
BlackRock’s IBIT registered the third-largest inflow last year, with over $37 billion in capital flowing to the US-traded Bitcoin ETF. Additionally, IBIT’s assets under management (AUM) total roughly $52 billion, besting other ETFs among the top 20.
IBIT was bested by two other giant traditional ETFs tied to the S&P 500. The iShares Core S&P 500 ETF (IVV) registered nearly $87 billion in flows, over two times the amount registered by IBIT, and Vanguard S&P 500 ETF (VOO) surpassed $116 billion in inflows.
Meanwhile, Fidelity’s FBTC secured the 14th place, with $11.8 billion in yearly flows. Yet, its AUM is considerably lower than IBIT’s, at nearly $19 billion.
The ETF market amassed $1,14 trillion in flows, with FBTC and IBIT net flows combined representing 4.3% of the total. Notably, both funds have less than one year since launch.
Another milestone conquered by US-traded Bitcoin ETFs — including spot, derivatives, and leverage — was surpassing gold ETFs’ total AUM in mid-December.
Gearing up for a great year
President-elect Donald Trump’s pro-crypto stance, which has already seen favorable nominations to key regulatory positions, has sparked optimism among industry players.
According to analysts, the ETF market is among the areas set for growth under a friendlier administration in the US. Bitwise estimates that $35 billion will flow into Bitcoin ETFs this year, bringing in over $70 billion in inflows in less than two years since their launch.
In addition to this prediction, Balchunas and his fellow Bloomberg ETF analyst James Seyffart expect a wave of new ETF approvals this year. However, despite all the pressure boosting this market, it may not be enough to best industry giants for now.
Adam Back, co-founder and CEO of Blockstream, questioned Balchunas if a spot Bitcoin ETF could overtake the top spot in inflows this year.
According to Balchunas:
“Maybe… VOO will be very tough to beat by anyone let alone a newcomer like IBIT. It’s almost like a public utility at this point. Gas, electric and VOO.”
Nevertheless, two spot Bitcoin ETFs ranking among the top 20 in their debut year is a significant accomplishment by these products.