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Crypto is shaking up the ETF scene. A new survey from Charles Schwab shows cryptocurrencies now outpacing bonds as the second most sought-after asset class among exchange-traded fund (ETF) investors. It’s only behind equities, but not by much. About 45% of Schwab’s respondents are eager to tap into crypto ETFs, just short of the 55% looking at equities.

Millennial Investors Flock to Crypto ETFs

But here’s where things get spicier: for millennial ETF investors, crypto has surged past equities. An eye-popping 62% of millennial respondents say they’re gearing up to invest in cryptocurrencies. The millennial generation, long into meme stocks and now riding the DeFi wave, sees crypto as the way forward.

According to Bloomberg’s Eric Balchunas, the sheer interest in crypto ETFs is “stunning”. “Almost half of Schwab’s respondents said they plan to invest in crypto ETFs, more than bonds, international, alts,” Balchunas posted on X, the platform formerly known as Twitter.

Bitcoin ETFs Dominate 2024 Inflows

The data doesn’t lie. Cryptocurrency ETFs have been making serious waves in 2024. Nate Geraci from The ETF Store, an investment advisory firm, shared that 13 of the 25 largest ETF launches this year were in the crypto realm. Leading the charge? Spot Bitcoin ETFs. The big guns of Bitcoin ETFs—BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF Trust (BITB)—have collectively pulled in almost $35 billion in net inflows.

BlackRock’s IBIT alone has scooped up nearly $21 billion through August. Not far behind, Fidelity’s FBTC has grabbed close to $10 billion, with ARKB and BITB each netting around $2 billion. Ethereum’s been doing some heavy lifting too. The iShares Ethereum Trust ETF (ETHA) led Ether’s charge, drawing over $1 billion in net inflows, solidifying Ether’s foothold.

BTC ETF Options on the Horizon

Looking ahead, spot Bitcoin ETF options are likely to launch in the U.S. by Q1 2025. According to Bloomberg’s James Seyffart, these options could spark massive institutional demand, adding even more momentum to Bitcoin’s climb. Investors and institutions alike are waiting for that boost.