Spot BitcoinBTCETFs have been doing very well, as institutional and retail investors are helping to accelerate their flows.
The data shows that ETFs launched in the first half of this year have gained over $16.16 Billion. in inflows This year. Bloomberg’s estimate for the 12-month period was between $12 and $15 billion.
Blackrock’s iShares Bitcoin Trust is the leader of the market. It has accumulated more than 316k coins worth over $18billion. Fidelity’s Wise Origin Bitcoin Fund follows, with more than 176k bitcoins. Cathie Wood’s ARKB and Bitwise’s BITB are also notable Bitcoin ETFs, with respective holdings of 47,765,39,420 and 7,197 bitcoins.
Grayscale Bitcoin Trust, which used to be the biggest Bitcoin ETF in the world, saw a large outflow this year, with a loss of over 18,000. The high expense ratio, 1.50%, is the reason for this decline. Blackrock IBIT charges only 0.25%. In the case of a $100k investment, GBTC charges $1,500 annually in fees. IBIT only charges $250.
Further data indicates that institutional investors like Millenium Management, Susquehanna, Horizon Kinetics and Jane Street have purchased these Bitcoin ETFs. An article published Monday revealed that Millenium Management and Susquehanna funds, Horizon Kinetics and Jane Street, as well as Susquehanna had purchased Bitcoin ETFs. Fortress Investments Apollo Global and Farallon Capital were also notable.
Millennium, a $68 Billion fund is managed by Izzy Englander. Apollo Global is among the leading private equity firms around the globe. Susquehanna’s owner is a Trump supporter and TikTok’s biggest investor.
Ethereum ETFs to see success similar to Bitcoin?
The numbers were released at a moment when investors were waiting on the approval from spot Ethereum ETFs. Analysts believe that approval is likely to happen in the next month.
Ether ETFs should perform well on paper since Ether has an impressive history of outperforming Bitcoin. Ethereum is up 1,654% since the beginning of the year, while Bitcoin has gained 587%.
Ether, on the other hand, is the liquidest cryptocurrency in the market while Grayscale Ethereum Trust has the highest liquidity. added almost Assets worth $10 billion. The fund is expensive with a 2.50% management fee.
This was previously reported. spot Ethereum ETFs The cold wallet key is perfect for institutional investors that might have difficulty dealing with it.
Investors who invest in this fund will be charged a fee, and will also lose out on the staking rewards. Most funds charge an average expense ratio between 0.25% and 0.35%. Data shows Ethereum’s annual yield is about 3.26%. Ether holders will therefore do better than ETF investors.
There is therefore a possibility that spot ETFs for ETH will trail Bitcoin in terms inflows of assets.
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Source: crypto.news