Airdrop Army

A Bitcoin ETF Boom

The ETF space is getting wild, and Bitcoin is at the center of it. Out of the 575 ETFs rolled out in 2024, Bitcoin funds have taken top billing, capturing four of the most-watched spots. Demand is off the charts, with Bitcoin ETFs blowing past all expectations and hitting $20 billion in flows—faster than gold ETFs ever dreamed. The change? The SEC finally eased up, allowing 10 new Bitcoin ETFs to enter the market, breaking a 10-year resistance from regulators.

But here’s the twist: it wasn’t just new investors pouring cash into these Bitcoin ETFs. This surge partly comes from traders who sat on the sidelines for years, waiting for a secure, institution-friendly way to get into Bitcoin. And now they’re coming in fast, seeing ETFs as their pathway into the crypto scene.

BlackRock’s iShares Leads the Pack

BlackRock’s iShares Bitcoin Trust has sucked up more capital than any other ETF released in the last four years. Bloomberg shows this fund as the single largest ETF in terms of inflows, a nod to just how deep Wall Street’s Bitcoin interest runs. And it’s not just casual players; major names like Morgan Stanley and Goldman Sachs have started getting Bitcoin exposure through these funds. Even hedge funds jumped in, running complex strategies like going long on ETFs while shorting futures, maximizing their game on both ends of the spectrum.

According to Bloomberg’s James Seyffart, Bitcoin ETFs fill a gap long sought by investors who had money but no secure gateway. “It’s partly pent-up demand,” Seyffart said. “But it’s also new demand as people are learning more.” This is not just hype; it’s a transformation of financial culture that sees Bitcoin ETFs as a stable link to digital assets.

Ethereum ETFs Linger in Bitcoin’s Shadow

Yet, it’s not all crypto sunshine. Ethereum ETFs, greenlit by the SEC in May, have seen little traction compared to their Bitcoin counterparts. The problem? A chunk of it lies with Grayscale’s Ethereum Trust (ETHE), which only switched to an ETF format in July. Before that, it was a closed-end fund, so investors’ cash was locked in. When they finally had a chance to pull out, they did—fast.

Now, ETHE is leaking capital at record rates, shedding $3 billion as investors make their exit. All nine Ethereum ETFs combined have tumbled to a net negative of $472.7 million in flows, as noted by Farside data. As Seyffart put it, “The outflows from ETHE are overwhelming the inflows to these other [Ethereum] ETFs.”

In short, Bitcoin ETFs are holding their ground, while Ethereum ETFs struggle to stabilize.