Crypto ETFs and ETPs See $2.2 Billion Inflows in May: ETFGI

Crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs) experienced substantial inflows of $2.2 billion in May, according to ETFGI, an independent research firm. This brings the year-to-date net inflows to $44.50 billion.

Comparatively, last year’s inflows totaled $135.57 million by this time, demonstrating significant growth, as noted in ETFGI’s May 2024 report on the ETF and ETP Crypto industry landscape.

SEC’s Approval Sparks Market Surge

The U.S. Securities and Exchange Commission’s approval of eleven spot Bitcoin ETFs in January, including those from BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck, triggered a bull market and substantial trading activity.

In February, global crypto ETFs and ETPs gathered $9.20 billion in net inflows, though enthusiasm for these products appeared to wane slightly.

BlackRock’s IBIT Leads with $1.7B Inflows

BlackRock’s iShares Bitcoin Trust (IBIT) recorded the highest individual net inflow in May, amassing $1.17 billion. Overall, 20 ETFs/ETPs saw significant inflows, totaling $3.11 billion for the month.

Products from Fidelity and Ark Investments/21Shares also saw notable inflows.

Growing Number of Crypto ETFs, ETPs, and ETNs

In May, the number of crypto ETFs and ETPs listed globally increased, with 208 products, 551 listings, and $82.27 billion in assets from 47 providers across 20 exchanges in 16 countries. Despite new bitcoin and ethereum exchange-traded notes (ETNs) on the London Stock Exchange (LSE), these products are struggling to attract institutional demand.

While ETNs and ETFs/ETPs are popular investment vehicles traded on stock exchanges, they differ fundamentally in structure, risk, and tax treatment. ETNs are unsecured debt obligations issued by financial institutions, where investors lend money to the issuer in exchange for returns based on an underlying index or asset performance, minus fees.