Crypto ETFs and ETPs Experience $2.2B Inflows in May: ETFGI
According to ETFGI, an independent research firm, there was a significant influx of $2.2 billion into crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) globally in May. This brings the total net inflows for the year to $44.50 billion.
Comparatively, the inflows at this time last year were only $135.57 million, as stated in the May 2024 ETF and ETP Crypto industry landscape insights report from ETFGI.
The $2.2 billion inflow in May represents a 16.7% increase from $70.47 billion at the end of April 2024 to $82.27 billion at the end of May 2024, as reported by ETFGI.
Approval of Spot Bitcoin ETFs by the SEC in January Sparks Inflows
In January, the U.S. Securities and Exchange Commission approved eleven spot Bitcoin ETF applications from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck. This decision caused a trading frenzy and triggered a bull market.
In February, there was a net inflow of $9.20 billion into crypto ETFs and ETPs listed globally, indicating a decrease in enthusiasm for these products.
BlackRock’s IBIT Sees $1.7B Inflows in May
Continuing the trend, the iShares Bitcoin Trust (IBIT) by BlackRock received the largest individual net inflow of $1.17 billion. ETFGI attributes the significant inflows to 20 ETFs/ETPs by net new assets, which gathered $3.11 billion in May.
Fidelity and the Ark Investments/21Shares products also experienced noteworthy inflows.
Number of Issuers Launching Crypto ETFs, ETPs, and ETNs Increases
In May, the number of Crypto ETFs and ETPs listed globally continued to rise. The sector now has 208 products, with 551 listings and assets totaling $82.27 billion. These offerings come from 47 providers listed on 20 exchanges in 16 countries.
The UK recently welcomed several bitcoin and ethereum exchange-traded notes (ETNs) listed on the London Stock Exchange (LSE). However, these products have struggled to attract inflows due to a lack of institutional demand, according to crypto ETP providers.
It is important to note that ETNs and ETFs/ETPs are popular investment vehicles that trade on stock exchanges, but they differ in structure, risk, and tax treatment. ETNs are unsecured debt obligations issued by financial institutions, where investors lend money to the issuer, who promises to pay a return based on the performance of an underlying index or asset, minus fees.
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