ETFGI, an independent research firm, has reported that assets invested in cryptocurrency exchange traded funds (ETFs) and exchange traded products (ETPs) listed globally have reached a major milestone of $69.39 billion at the end of February. This is a significant increase of 358.9% from $15.12 billion at the end of 2023. During the month of February, crypto ETFs and ETPs listed globally gathered net inflows of $9.20 billion, bringing year-to-date net inflows to $36.76 billion, which is much higher than the $179.02 million in net inflows at this point last year. This marks the fifth month that crypto ETFs and ETPs have seen net inflows.
On January 11, the U.S. Securities and Exchange Commission approved eleven spot Bitcoin ETF applications from companies such as BlackRock, Ark Investments, 21Shares, Fidelity, Invesco, and VanEck. This approval caused a trading frenzy and triggered a bull market in the cryptocurrency space. BlackRock’s iShares Bitcoin Trust (IBIT) has seen a significant influx of $320 million in new investments, making it one of the fastest-growing ETFs in the history of ETFs. BlackRock CEO Larry Fink has expressed his surprise and satisfaction with IBIT’s performance, emphasizing that its success has surpassed his expectations, particularly during its first 11 weeks of trading.
In 2022, ETFGI reported that there were $12.4 billion invested in 100 crypto ETFs or ETPs listed globally at the end of January. There has been a rise in the number of issuers launching cryptocurrency ETPs, as more investors are conducting due diligence on investing in cryptocurrency. Some investors are starting to add exposure to Bitcoin and other cryptocurrencies to their portfolios as the market continues to grow. This growth in the number of issuers and investment options has contributed to the overall increase in assets invested in crypto ETFs and ETPs globally.
The approval of spot Bitcoin ETFs by the SEC has played a significant role in driving the growth of the cryptocurrency ETF market. Companies like BlackRock, Ark Investments, and Fidelity have been able to attract substantial investments into their crypto ETF products, leading to a surge in net inflows. This increased investor confidence in cryptocurrency ETFs and ETPs has also contributed to the overall growth of the market, with more investors looking to diversify their portfolios and capitalize on the potential returns offered by cryptocurrencies.
As the adoption of cryptocurrency ETFs and ETPs continues to grow, more investors are becoming interested in adding exposure to digital assets in their investment portfolios. The surge in net inflows into crypto ETFs and ETPs indicates a growing interest from institutional and retail investors alike. The success of products like BlackRock’s iShares Bitcoin Trust highlights the potential for these investment vehicles to attract significant investments and drive further growth in the cryptocurrency market as a whole.
Overall, the rise in assets invested in cryptocurrency ETFs and ETPs globally reflects the increasing acceptance and adoption of digital assets in the traditional investment space. The approval of spot Bitcoin ETFs by regulatory bodies like the SEC has opened up new opportunities for investors to access the cryptocurrency market through regulated investment products. As more issuers continue to launch crypto ETFs and ETPs, this trend is expected to continue, providing investors with new ways to diversify their portfolios and participate in the growing digital asset market.
