Spot Bitcoin ETF Up 54% YTD To Outrank Rival TradFi Peers

Spot Bitcoin ETF has outperformed several traditional Exchange Traded Fund products with a Year-to-date (YTD) increase of 54%.

U.S. Bitcoin ETF Launch Improves Market Outlook

Nate Geraci, the President of ETFStore outlined a couple of ETFs earlier today alongside their YTD performance. A glance through the list which featured Bitcoin (BTC), S&P 500, and US bonds, showed that BTC has gone up by 54% from January to date. Compared to BTC, Gold has jumped by 13% YTD, the S&P 500 up by 11% with assets like US Bonds and 20-year Treasury dropping  2% and 7% respectively.

Year-to-date total return…

BITO (bitcoin) +54%
GLD (gold) +13%
SPY (s&p 500) +11%
QQQ (nasdaq 100) +10%
IEFA (dev int’l) +7%
PDBC (commodities) +6%
IEMG (emerging mrkts) +4%
IWM (us small caps) +3%
SHY (1-3yr treas) +1%
AGG (us bonds) -2%
VNQ (reits) -5%
TLT (20+yr treas) -7%

— Nate Geraci (@NateGeraci) June 1, 2024

A significant percentage of this surge could be attributed to the introduction and adoption of spot Bitcoin ETF product in the United States earlier this year. The Securities and Exchange Commission (SEC) greenlighted the offering in January, marking the beginning of a massive market movement.

The issuers of the new ETF product included top investment management firms like BlackRock, Fidelity Investments, Grayscale Investments, WisdomTree, Bitwise, and Cathie Wood’s ARK Invest in collaboration with 21Shares. Bitcoin ETF launch brought a high level of excitement to the crypto market, underscored by several investors diving to take a slice of the market.

In its first day of trading, spot Bitcoin ETFs recorded over $4.6 billion in trading volumes from 700,000 individual trades that were executed. Senior Bloomberg ETF analyst Eric Balchunas noted that this was “Easily the biggest splash in ETF history for a first day. No matter where you look, it’s superseded expectations.”

By the third day, the 11 spot Bitcoin ETFs that were approved by the securities regulator jumped to a $10 billion trading volume. The days that followed also brought impressive results as more traditional institutional investors plunged their funds into the crypto ETF.

In no time, Bitcoin price surged to its new all-time-high (ATH) of over $73,000. Again, this bullish sentiment attracted investors to join the Bitcoin ETF movement.

Crypto Ecosystem Awaits Spot Ethereum ETF Launch

Recently, the U.S. Bitcoin ETF market has seen some negative days, recording more outflows than inflows. In April alone, the spot Bitcoin ETFs accumulated outflows of more than $344 million, casting a gloomy atmosphere on the market. The last few days came with some slight recovery for the Bitcoin ETF market. However, New York Stock Exchange (NYSE) Group President, Lynn Martin recognizes the liquidity that the offering brought to the market.

The next step for the crypto ecosystem is launching an Ethereum ETF.  Approval has been given by the SEC but issuers still need to gain approval on their updated S-1 registration before trading can commence.

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