Spot Bitcoin (BTC) ETFs are doing well as their inflows accelerate, helped by institutional and retail investors.
ETFs launched earlier this year have added over $16.16 billion in inflows. This trend beats Bloomberg’s 12-month estimate of $12-$15 billion.
Blackrock’s iShares Bitcoin Trust (IBIT) leads, holding over 316k coins worth over $18 billion. Fidelity’s Wise Origin Bitcoin Fund (FBTC) follows with 176k coins. Other notable ETFs include ARKB, BITB, and BTCO, holding 47,765, 39,420, and 7,197 coins respectively.
In contrast, the Grayscale Bitcoin Trust (GBTC), once the largest Bitcoin ETF, has seen an outflow of over 18,000 coins this year. This is attributed to its high fees, with a 1.50% expense ratio compared to IBIT’s 0.25%. For example, a $100k investment in GBTC incurs $1,500 in annual fees, while IBIT would only cost $250.
Additional data shows major institutional investors have bought Bitcoin ETFs. A report on Monday revealed that investors like Millenium Management, Susquehanna, Horizon Kinetics, and Jane Street have purchased Bitcoin ETFs. Other significant buyers include Fortress Investment, Apollo Global, and Farallon Capital.
Millennium is a $68 billion fund managed by billionaire Izzy Englander. Apollo Global is a leading private equity firm. Susquehanna, owned by a Trump ally, is a major TikTok investor.
Will Ethereum ETFs see similar success?
These numbers arise as investors await approval for spot Ethereum ETFs, expected this month. Analysts predict success for Ethereum ETFs due to Ethereum’s strong performance history, gaining 1,654% in five years compared to Bitcoin’s 587%.
Ether’s liquidity and the $10 billion assets in Grayscale Ethereum Trust (ETHE) indicate strong potential. However, ETHE comes with a high management fee of 2.50%.
Spot Ethereum ETFs are expected to appeal to institutional investors wary of managing cold wallet keys. Retail investors in these funds will incur fees and miss out on staking rewards, which have an annual yield of about 3.26%. Most funds will likely charge an expense ratio of 0.25%.
Thus, spot ETH ETFs may trail behind Bitcoin in asset inflows.
