Bitcoin, $1 Trillion Inflows: 2024's Top ETF Stories

Significant milestones and an explosion of product innovation defined the year in ETFs. With strong equity markets providing a nice tailwind, the industry saw accelerated growth and a wave of new launches, creating the perfect backdrop for an unforgettable year. Let’s take a closer look at the top three stories shaping the ETF landscape in 2024.

Trillion Dollar Milestones: S&P 500, Bitcoin ETFs

Assets in U.S.-listed exchange-traded funds surged past $10 trillion, inflows eclipsed the $1 trillion mark for the first time, and the industry shattered its record for new launches. 

Numerous other achievements during the year included record inflows into equity ETFs, fixed-income ETFs, and actively managed ETFs. Even at the individual ETF level, records were toppled left and right.

Not one, but two ETFs obliterated the prior annual inflow record with both the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) vacuuming up investor dollars. VOO became the first ETF to take in over $100 billion in annual inflows. IVV wasn’t far behind at nearly $90 billion. The prior annual inflow record was just over $50 billion. 

Meanwhile, the brand-new iShares Bitcoin Trust (IBIT) obliterated nearly every individual ETF launch record.

The bottom line is that the ETF record book was rewritten in 2024, a year the industry won’t soon forget. 

Spot Bitcoin ETFs Debut

If there was a single industry development that captured the most attention this year, it was the long-awaited debut of spot bitcoin ETFs. After 10-plus years of uncertainty and regulatory hurdles, the products were finally given the green light in January. 

Their success has been nothing short of astonishing. The group of 12 ETFs has taken in nearly $36 billion, despite over $21 billion in outflows from the Grayscale Bitcoin Trust (GBTC). 

As noted above, a record-shattering 730-plus ETFs have launched this year. Four of the top five by inflows are spot bitcoin ETFs. A mind-boggling 10 of the 12 bitcoin ETFs occupy the top 50 (or top 7%) of new launches.

Perhaps the most eye-opening stat is IBIT surpassing its gold counterpart, the iShares Gold Trust (IAU), in assets. IAU had a nearly 20-year head start, launching in January of 2005. IBIT has blown past IAU by over $20 billion. You read that correctly—over $20 billion. 

There are so many astounding stats surrounding the success of spot bitcoin ETFs that it seems certain the industry will never see a category launch like this again.

Product Innovation: A Year of ETF Firsts

It would be difficult to highlight the year in ETFs without mentioning the sheer pace of product innovation. 

In addition to spot bitcoin ETFs, the industry witnessed a parade of firsts: spot ether ETFs, private credit CLO ETFs, money market ETFs, calendar reset leveraged ETFs, FIRE (as in Financial Independence, Retire Early) ETFs, a “Tax Aware” ETF taking advantage of something called a 351 conversion, and the list goes on. 

Just when you think issuers might be out of new ideas, yet another innovative ETF comes to market. There is a reason the industry is often referred to as the “Silicon Valley of asset management” and 2024 only reaffirms that label.