Response to Bitcoin and Crypto ETFs Is Overwhelming: S&P Global

The world’s largest credit rating agency, S&P Global, recently released a report highlighting the strong demand for Bitcoin ETFs and other crypto ETFs since their launch last year. This comes as these crypto funds continue to witness massive inflows, with BlackRock’s IBIT leading the way.

S&P Global Highlights Demand For Bitcoin ETFs

In a research report, the credit rating agency stated that the response to and popularity of the Bitcoin ETFs were overwhelming as they unlocked the crypto ETF market. Since their launch in 2024, the agency noted that the investor inflows into these funds have been “very strong.”

The S&P Global further highlighted how the assets under management (AuM) for these crypto ETFs more than doubled from the end of the first quarter in 2024 to year-end 2024, surpassing $120 billion, although this growth has been volatile.

Meanwhile, the report also noted that institutional investors have warmed up to Bitcoin ETFs and other crypto funds as they allow them to gain crypto exposure without having to own the asset directly. Furthermore, S&P Global stated that in many ways, these ETFs address the challenges that institutions that wish to buy, hold, or sell crypto easily face.

Interestingly, this research report comes just as BlackRock’s IBIT continues to rank as one of the largest ETFs this year in terms of year-to-date (YTD) flows. As CoinGape reported, BlackRock’s ETF has crossed $14 billion in YTD flows and is now approaching the 700,000 BTC milestone.

BlackRock’s inflows this year have led Strategy’s Michael Saylor to predict that IBIT could lead the YTD flows by year-end, even above Vanguard’s VOO. Meanwhile, it is worth noting that SoSo Value data shows that the Bitcoin ETFs boast a total net asset of $133.53 billion. This accounts for 6% of BTC’s market cap.

Ethereum ETFs have also recorded significant demand since their launch in July last year. SoSo Value data shows that these funds hold $9.90 billion in net assets, which accounts for 3.35% of Ethereum’s market cap.

Why ETFs Will Continue To See Demand

S&P Global suggested Bitcoin ETFs and other crypto funds will continue witnessing significant demand, thanks to the “simple point-and-click ease of trading an ETF, via an online brokerage account.” First, the report noted that ETFs offer a simple buy-and-sell experience through established channels.

Secondly, and what might be most important for institutions, is the fact that trading shares of these ETFs means the custody of the underlying assets is managed by a well-established technology provider.

Meanwhile, the research noted that the digital market continues to witness a “rapid proliferation” of altcoins, stablecoins, DeFi tokens, meme coins, and other tokenized assets. S&P Global further alluded to the fact that crypto ETF issuers are now targeting XRP, Solana, and even meme coin assets like Dogecoin and PENGU, while multi-asset ETFs are also in the mix.

Bloomberg analysts Eric Balchunas and James Seyffart predict that the Solana, XRP, and Dogecoin ETFs will launch this year, joining the Bitcoin ETFs and Ethereum ETFs on the market.