Charles Schwab, a world-renowned financial services giant, pointed out in its "ETFs and Beyond" report released on October 10 that nearly half of the 2,200 investors surveyed planned to invest their funds in cryptocurrency ETFs.
The survey was conducted from July 2 to July 20 and covered 2,200 investors, of which 45% of ETF investors expressed interest in cryptocurrency products. Although U.S. stock investments still dominate, this trend shows that cryptocurrency ETFs are becoming one of the focus of investors.
Eric Balchunas, senior ETF analyst at Bloomberg, expressed surprise at the survey results, which reflect that cryptocurrencies, as an emerging asset class, are gradually entering the mainstream investment field and becoming an important part of investors' asset allocation.
Millennials are more enthusiastic about cryptocurrencies
In this survey, an interesting phenomenon caught the attention of Nate Geraci, president of ETF Store. Among them, millennials, that is, investors aged 28 to 43, accounted for 62% of those who planned to invest in cryptocurrency ETFs. This group of investors is not only willing to take higher risks, but also prefer investment options that are consistent with their personal values.
In addition to millennials, 44% of investors in Generation X (ages 44 to 59) are interested in cryptocurrency ETFs, while only 15% of baby boomers (ages 60 to 78) choose to invest in cryptocurrency ETFs. Nate Geraci commented that although Schwab's report has these market data, it has not yet launched a spot cryptocurrency ETF, which he thinks is incredible.
In September, Nate Geraci, president of ETF Store, predicted that, based on year-to-date inflows, 13 of the 25 largest ETFs issued in 2024 will be cryptocurrency ETFs. This phenomenon coincides with the launch of spot Bitcoin ETFs and Ethereum exchange-traded funds in the United States this year, showing that the market's interest in cryptocurrency ETFs is growing.
The report of Charles Schwab also pointed out that despite various events that have affected the development of market conditions since the beginning of the year, investors' confidence in ETFs has not been fundamentally shaken. This persistence not only reflects investors' optimism about the long-term trend of the market, but also reflects the stability and attractiveness of ETFs as an investment tool.
Data Analysis of Cryptocurrency ETFs
Although the survey results show that market sentiment is generally optimistic about cryptocurrency ETFs, the recent flow of funds into U.S. Bitcoin ETFs shows a different picture.
According to data from Farside Investors, on October 10, 11 spot BTC ETFs suffered a total outflow of $81.1 million, which was the third consecutive day of outflows. Among them, BlackRock's IBIT fund lost $10.8 million on that day, while Fidelity's FBTC fund lost $33.8 million. Bitwise's BITB fund and Ark 21Shares' ARKB fund were also not spared, with outflows of $6.2 million and $30.3 million respectively on that day.
However, in sharp contrast to the outflow of funds from Bitcoin ETF, Ethereum spot ETF has ushered in a small climax of capital inflow. The report on the same day showed that Ethereum spot ETF inflows on Thursday reached $10.1 million, the highest level in more than a week. Although Fidelity and Bitwise outflowed $3.5 million and $4.2 million respectively, BlackRock's ETHA fund still dominated the inflow of Ethereum spot ETFs on the day with an inflow of $17.8 million.
At the same time, the spot cryptocurrency market as a whole is showing a downward trend, having fallen nearly 3% since Monday, with a total market value of more than $60 billion evaporated. Although Bitcoin's daily price is above 62,500 as of Saturday, it is still below the bull market support zone and the 200-day moving average.
The above data suggests that although investors’ interest in cryptocurrency ETFs remains unabated, they may be more cautious about directly holding cryptocurrency assets, which may be due to the influence of market volatility and other macroeconomic factors.
Finally, as the cryptocurrency market matures and the regulatory environment improves, we have reason to believe that crypto ETFs will become an investment option for more investors and occupy a place in the future financial market.
