Bitcoin ETF Soared in 2024 as Growth Themes Dominated
U.S. exchange-traded funds hit a major milestone in 2024 with assets growing 28% to $10.36 trillion, driven by market appreciation and net inflows of $1.12 trillion, according to a new CFRA report.
According to CFRA’s head of ETF research, Aniket Ullal, the record year signals a shift in investor access to markets with growth-oriented themes and active management strategies reshaping the traditionally dominated ETF landscape.
It Hashdex Bitcoin Futures ETF (DEFI) led all categories with a 109.4% return in 2024, based on CFRA data.
Technology-based funds have also performed well as well Roundhill Magnificent Seven ETF (MAGS) returning 62.7% and Defiance Quantum ETF (QTUM) collecting 50.4%, the report showed.
Active ETF strategies captured 24.6% of total inflows in 2024, up from 14.6% in 2022, according to CFRA’s analysis.
The study found that the trend was largely driven by smart beta products, whose inflow fell to 7.7% from 18.7% over the same period.
Vanguard and: BlackRock maintained their industry dominance, capturing 53% of all ETF inflows in 2024, according to a CFRA report.
It Vanguard S&P 500 ETF (VOO). attracted the most new assets with inflows of $115.1 billion, followed by iShares Core S&P 500 ETF (IVV) 86.5 billion dollars, the report revealed. It iShares Bitcoin Trust (IBIT) ranked third with an inflow of $37.5 billion in its first year of trading.
JPMorgan:Meanwhile, the active space has shown increasing influence, capturing 3.9% of total flows, despite just 1.6% of assets at the start of 2024, the study found.
Active ETF issuers continued to gain market share through 2024, the report noted.
Dimension Fund Advisors and: Capital Group Exemplifying this trend, both companies are attracting more traffic than their market share would suggest, according to the report.
It Global X MSCI Argentina ETF (ARGT) According to the survey, it grew by 61.6 percent in 2024 due to investor optimism around the reform agenda of Argentine President Javier Mille.The gaming sector also showed strength, with VanEck Video Gaming and eSports ETF (ESPO) rounding out the top five performers.
Traditional index ETFs still hold their appeal, with annual inflows rising 89% to $759.3 billion in 2024 from $402.4 billion in 2022, according to the data.
Looking ahead, CFRA plans to 2025. ETF inflows range from $500 billion to $1 trillion, which could rise if the Securities and Exchange Commission approves ETFs as a mutual fund share class.
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