ETFs See $53.7B Inflows in April, Bitcoin ETFs Gain $142.3M

Generated by AI AgentCoin World
Friday, May 9, 2025 12:09 am ET1min read
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On May 8, 2025, the ETF market witnessed significant changes in asset flows, mirroring the evolving strategies and sentiments of investors. US-listed ETFs experienced substantial net inflows of $53.7 billion in April, elevating the total assets under management to $10.30 trillion. This increase was largely propelled by equity ETFs, which attracted considerable net inflows, although specific figures for equity ETFs were not provided.

In the cryptocurrency ETF sector, there were notable movements on May 7, 2025. Bitcoin ETFs recorded net inflows of $142.3 million, while Ethereum ETFs saw net outflows of $21.8 million. This indicates a preference for Bitcoin over Ethereum among institutional investors. However, the latest data from

WisdomTree
showed a stagnant movement in institutional interest, with a net flow of 0 million USD as of May 8, 2025. This stagnation contrasts with the previous day's inflows, underscoring the volatility in investor sentiment towards cryptocurrency ETFs.

The active ETF segment encountered challenges in the first quarter of 2025, with the share of broad inflows going to active ETFs dropping from 7% in 2024 to below 5%. This decline is partly due to a rotation out of US equities, where active ETFs are over-represented. The shift in investor focus towards other regions and asset classes, such as fixed income and commodities, has led to a decrease in active ETF inflows. However, active ETFs still represent a small fraction of European ETF assets under management, indicating potential for growth. Active fixed income ETFs, in particular, showed resilience with inflows of just over $1 billion in the first quarter of 2025.

Despite these challenges, active ETF managers remain optimistic about the future. They argue that the drop in active ETF flows is not structural but rather a result of temporary market conditions. The significant white space opportunity, with total passive AUM being around $1 trillion and active AUM being around $30 billion, suggests that there is still room for growth in the active ETF segment. As the market matures and more active strategies are introduced, the true appetite for active ETFs is expected to become clearer.