Cryptocurrency exchange-traded funds (ETFs) have gained the status of one of the top investment choices to be pursued, second only to equities, per a recent Charles Schwab survey. The research shows that 45% of the pool of ETF investors plan to invest in cryptocurrency products, thus beating fixed-income securities.
This increase in crypto ETF interest is especially high among millennial investors, in which digital assets have indeed surpassed equities as the most desired investment vehicle. As many as 62% of the millennial ETF investors showed their intention to include cryptocurrency in their portfolio.
The popularity of crypto ETFs isn’t theoretical—their relative popularity is reflected in real market performance. Among the roughly 400 new ETFs to launch in 2024, cryptocurrency products have dominated the success stories.
Results of that survey are “pretty stunning,” said Bloomberg Intelligence ETF analyst Eric Balchunas, underlining how unexpected it is for crypto to be favored over bonds, international equity, and alternatives.
BlackRock’s iShares Bitcoin Trust, IBIT, leads the pack this year, gathering nearly $21 billion in inflows through August. Next in line is Fidelity’s Wise Origin Bitcoin Fund, FBTC, with nearly $10 billion in net inflows, while the ARK 21Shares Bitcoin ETF, ARKB, and Bitwise Bitcoin ETF Trust, BITB, have each drawn in about $2 billion.
With such obvious market appetite, some established players have kept themselves on the sidelines. Nate Geraci, president of The ETF Store, said it was ironic that “Schwab has this data & still hasn’t launched spot crypto ETFs,” and maybe that could be a different outcome for those traditional investment houses.