As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless trends and shifts in the industry. The recent data from SoSoValue regarding Bitcoin and Ethereum ETFs has piqued my interest, given my long-standing fascination with the digital asset space.
The impressive inflows into Fidelity’s Wise Origin Bitcoin Fund are undeniably noteworthy, and it’s clear that institutional investors are increasingly bullish on Bitcoin. BlackRock’s iShares Bitcoin Trust ETF, which dominated throughout 2024, had a relatively modest finish in comparison, but with over $51 billion in total assets, it remains a force to be reckoned with.
The underperformance of Ethereum ETFs compared to their Bitcoin counterparts is concerning, especially considering the significant drop in the ETH/BTC pair this year. With Ether plunging by 55% since 2022, it’s a stark reminder that investing in digital assets is not without its risks.
That being said, I find it amusing to see Ethereum ETFs managing to record nearly $36 million worth of net flows on the last day of 2024, despite their underperformance relative to Bitcoin ETFs. It seems that some investors are still placing their bets on Ethereum, hoping for a comeback in the New Year.
As I continue to monitor these trends and analyze the data, I can’t help but chuckle at the irony of it all: just when we thought Bitcoin had reached its peak, it continues to climb higher, while Ethereum struggles to keep up. It seems that the world of digital assets is never short on surprises!
Based on data from SoSoValue, a total of approximately $5.32 million flowed into Bitcoin-based Exchange Traded Funds (ETFs) on the first day of January.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) has been receiving a significant amount of investment, with approximately $37 million flowing into it recently. This fund is getting close to managing a whopping $20 billion in total assets, with the current figure standing at about $18.9 billion.
2024 saw BlackRock’s iShares Bitcoin Trust ETF (IBIT) leading impressively with significant investments and breaking multiple records. However, it ended the year on a modest note, with outflows amounting to $23.4 million. Despite this minor setback, the revolutionary product has amassed a total of $51.7 billion in assets, showcasing its enormous success.
21Shares Bitcoin ETF by ARK (ARKB) and Grayscale Bitcoin Trust ETF (GBTC) have experienced inflows totaling $11.21 million and $9.63 million respectively, both showing negative performance.
Money is being invested into ARK’s Bitcoin ETF and Grayscale’s Bitcoin Trust ETF, with ARKB receiving $11.21 million and GBTC getting $9.63 million, but both are currently performing poorly.
Bitcoin is currently changing hands at $93,420 after recording its biggest yearly close ($93,413).
Despite a modest beginning in July, Ethereum ETFs accumulated approximately $36 million in net inflows by the last day of 2024.
On December 31st, the Fidelity Ethereum Fund (FETH) saw a significant surge in investments totaling approximately $31.77 million, outperforming most similar investment products. In comparison, Grayscale’s Ethereum Mini Trust ETF took second place with inflows of around $9.77 million.
Of course, they continue to substantially underperform Bitcoin ETFs in terms of total net flows.
This year, Ethereum (ETH) has struggled compared to Bitcoin, with the ETH/BTC ratio dropping as much as 33%. Intriguingly, this is not a new trend, as Ethereum has been on a three-year losing streak. Over this period, its value relative to Bitcoin has dipped by a substantial 55%, starting from 2022.
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2025-01-01 10:10