According to fresh data shared by Bloomberg’s senior analyst, Eric Balchunas, crypto ETFs within the United States market exceeded the performance of Vanguard’s well-known S&P 500 ETF (VOO) in July.
Balchunas highlighted in a recent X (formerly Twitter) thread that US-based crypto ETFs attracted an impressive $12.8 billion in investment during July. This figure surpasses all other ETFs, including VOO, which currently possesses $713.13 billion in total assets under management.
“US Crypto ETFs saw $12.8 billion in inflows during July, marking their best month ever, averaging approximately $600 million per day, about twice the norm. As a collective, they outperformed every individual ETF, including the formidable VOO.
Furthermore, every ETF in this category experienced positive cash flow (excluding the converted trusts), with Bitcoin and Ether contributing equally. This represents their most outstanding overall performance since the Eagles defeated the Chiefs in the Super Bowl. It will be difficult to surpass.”
The analyst further stated that BlackRock’s iShares Bitcoin Trust ETF (IBIT), a major player in asset management, is demonstrating strong performance and acquiring new investors.
“A remarkable statistic: 75% of those who invested in IBIT ($87 billion from one million individuals) were new BlackRock clients. Furthermore, 27% of these individuals proceeded to invest in other iShares ETFs. This is a significant win for BlackRock.”
Balchunas suggests that IBIT, which was launched in January 2024, played a crucial part in the substantial increase in Bitcoin’s (BTC) price over the past couple of years.
“1) ETFs maintain a 1:1 BTC holding ratio. There is no lending, and there are no paper IOUs involved. ETFs operate cleanly and transparently, with every dollar of AUM directly linked to the corresponding Bitcoin holdings.
2) Taking a broader perspective: Bitcoin has surged nearly 300% since BlackRock’s initial filing two years ago. ETF inflows have significantly contributed to this rise.
3) Based on online discussions, the selling pressure originates from long-time BTC enthusiasts who are unhappy with the adoption of BTC by Wall Street and government entities. I presume they would rather prefer BTC to have intermediaries like Sam Bankman-Fraud.”
At the time of this report, Bitcoin’s price is $113,763, reflecting a 3.2% decrease for the day, while IBIT and VOO are priced at $64.27 and $572, respectively.
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