Bitcoin ETFs Surge 120% in 2024 as Institutional Interest Soars

US-based spot Bitcoin ETFs experienced a significant surge in investor activity as the price of the top cryptocurrency reached a new all-time high of over $118,000 in dollars. According to SoSoValue data, the 12 funds saw cumulative inflows of $1.2 billion, marking the second strongest daily performance since their launch in 2024 and the best performance this year. Since mid-April, these funds have attracted more than $15 billion in fresh capital.

BlackRock’s IBIT led the day with $448.5 million in inflows, bringing its assets under management to just shy of $80 billion and holding over 700,000 Bitcoin, a record high. For context, it took SPDR Gold Shares (GLD), the largest gold ETF, more than 15 years to reach a similar level. Other Bitcoin ETF issuers like Fidelity’s FBTC also recorded strong performance on the day, with $324.34 million in inflows, while Ark 21Shares’ ARKB pulled in $268.7 million in fresh capital.

The surge in Bitcoin ETF activity is seen as a clear sign of institutional interest, spurred by the broader market rally. An ETF analyst emphasized that the influx of new funds into these ETFs is a significant accomplishment, pointing out that while market appreciation can boost assets, attracting new investors requires convincing them to buy. He explained that assets can increase just from market appreciation, but net flows are like net sales, requiring convincing people to buy the ETF. Today, they’re over $40 billion, and with market appreciation, they’re now around $120 billion. That’s astonishing. Gold took over a decade to hit that number.

Considering this, the analyst predicts the Bitcoin ETFs could surpass gold funds in assets within the next 3 to 5 years. Ethereum ETFs also performed strongly on the day, with the nine US spot Ethereum funds collectively attracting over $383 million in inflows. This is their second-best day performance since they launched last year. BlackRock’s iShares Ethereum Trust (ETHA) was at the center of this momentum, bringing in more than $300 million of the total inflows and seeing its volume climb to over $800 million for two consecutive days. Meanwhile, other issuers like Grayscale, Fidelity, Bitwise, and VanEck all saw inflows of $38 million, $37.2 million, $3.2 million, and $2 million, respectively.

A financial advisor pointed out that financial advisors, who control enormous amounts of dollars, have barely even begun allocating to btc & eth ETFs. Major platforms such as Vanguard are still gatekeeping these ETFs. And we’re still seeing near record inflows. The surge in Bitcoin and Ethereum ETF inflows highlights the growing institutional interest in cryptocurrencies, driven by the broader market rally and the appeal of these digital assets as investment vehicles. The performance of these ETFs suggests that despite regulatory challenges and market volatility, cryptocurrencies continue to attract significant investment, particularly from institutional players.