BlackRock's spot Bitcoin ETF attracted over $37 billion in 2024, far surpassing its competitors and confirming its leading position in the booming cryptocurrency ETF market.
The spot Bitcoin ETF market in 2024 has witnessed the absolute dominance of BlackRock, the largest asset manager in the world.
According to data from Farside Investors published on December 31 on platform X, BlackRock's iShares Bitcoin Trust (IBIT) attracted over $37 billion in net capital flow, more than 3 times that of the second fund, Fidelity Wise Origin Bitcoin Fund (FBTC), which had nearly $12 billion. This significant gap indicates BlackRock's strong appeal to investors in the digital asset field.
The outstanding appeal of the 'giant' BlackRock
Not only leading in the Bitcoin ETF sector, BlackRock also established its position with iShares Ethereum Trust (ETHA), attracting $3.5 billion in net capital flow in 2024. Although Fidelity Ethereum Fund (FETH) reached $1.5 billion and ranked second, the gap remains quite large compared to BlackRock. Farside Investors noted that Fidelity is more closely trailing in the Ethereum sector with 44% of BlackRock's total capital, compared to only 31% in the Bitcoin sector.
Source: Farside Investors
In total, Bitcoin ETFs in the US attracted over $35 billion in net capital flow over the past year, equivalent to about $144 million per trading day. This impressive figure includes over $20 billion in net capital withdrawals from Grayscale Bitcoin Trust (GBTC), a cryptocurrency investment fund launched in 2013 as an unlisted trust.
Source: Farside Investors
The shift of capital from GBTC, which has a management fee of 2.5%, to spot Bitcoin ETFs shows a trend favoring new investment products that are more transparent and have lower costs. Grayscale has also met this demand by listing Grayscale Bitcoin Mini Trust (BTC) with a management fee of only 0.15% per year.
The spot Bitcoin ETF is officially listed in the US starting January 2024, after a long period of waiting and debate with regulatory agencies, and is seen as a key catalyst for the market explosion. According to Cointelegraph Research, Donald Trump's victory in the US presidential election also contributed to this growth, as many investors believe this outcome will benefit the cryptocurrency industry.
On November 21, the total net assets of Bitcoin ETFs in the US surpassed the $100 billion mark for the first time, according to data from Bloomberg Intelligence, clearly demonstrating the remarkable growth of the market.
BlackRock's dominance in the Bitcoin ETF market not only reflects the strength and prestige of this 'giant' but also shows the increasing investment trend in digital assets. Nate Geraci, President of The ETF Store, stated that Bitcoin has dominated the ETF market in 2024, with 6 of the 10 most successful ETFs belonging to this asset class.
Among the approximately 400 new ETFs launched this year, the 4 ETFs with the highest capital flows are all spot Bitcoin ETFs. This indicates the growing interest and trust of investors in the growth potential of Bitcoin and the cryptocurrency market in general.
