Crypto ETFs were launched early this year and are positioned along with conventional ETFs that invest in the stock markets. According to a post shared by Nate Geraci, the President of the ETF store, crypto-linked ETFs have attracted more investors than conventional ETFs.
The United Securities Exchange Commission (SEC) approved the first Bitcoin ETF in January 2024, followed by the approval of Ethereum ETFs in May 2024. These approvals were long and tedious as the officials were concerned about the volatility of the prices of these cryptocurrencies.
*13* of top 25 ETF launches this yr are either bitcoin or ether related…
Out of approx 400 new ETFs.
Top 4 ETFs all spot btc. pic.twitter.com/gIkAiIM1jZ
— Nate Geraci (@NateGeraci) September 2, 2024
ETFs proved the easiest way for investors to invest in crypto. Per Geraci’s post, 13 of the top 25 ETFs are Crypto ETFs, which indicates their acceptance and growing user base.
From Niche to Mainstream: Bitcoin & ETH ETFs Widespread Acceptance
The crypto ETF shares similarities with the conventional ETF. Its investment structure is the same, and the investments are regulated, providing the same sense of security.
Compared to the volatile crypto markets, crypto-linked funds are more accessible and understandable to conventional investors, which has led to a rise in the acceptance of crypto ETFs.
Judging from the list, the total year-to-date Flows for the crypto-linked ETFs stand at a massive $39.31 Billion, out of which $37.61 Billion flows were from BTC ETFs.
Due to the multiple risks involved, it is easier to buy an ETF than a cryptocurrency. Crypto ETFs allow investors to diversify their portfolios, potentially reducing risk and increasing returns. They are also easy to buy and sell, increasing the market liquidity.
Conventional ETFs v/s Crypto ETFs
Among the 400 newly launched ETFs this year, crypto-linked funds soared high in popularity. The investors took to crypto ETFs, as 13 BTC or ETH related funds were listed in the top 25 of the newly launched ETF list.
Another profound implication of BTC on modern investing and becoming a widely accepted medium among investors is visible through the fact that the top four players in the list are BTC-linked.
The highest-ranked ETFs are all Bitcoin-linked funds, namely iShares Bitcoin Trust ETF (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB).
