US Takes Lead in Bitcoin ETFs as Canada Sees Major Outflows
In 2024, the U.S. emerged as the dominant force in the Bitcoin exchange-traded fund (ETF) space, securing the title of the largest investor in spot Bitcoin ETFs, while Canada, which had initially pioneered this market, experienced substantial outflows.
The U.S. has led the charge, with Bitcoin ETFs contributing to a staggering $44.2 billion in crypto exchange-traded product (ETP) inflows. This gave the U.S. the top spot globally, holding the largest share of assets under management (AUM) in Bitcoin ETFs. In stark contrast, Switzerland, which came in second place, only saw $630 million in inflows, highlighting a significant 98% gap.
Canada, which launched the first physically-settled Bitcoin ETF in 2021, saw its crypto ETF market suffer a significant setback, with $707 million in outflows in 2024. This shift reflects a growing preference among investors for the more liquid U.S.-based alternatives, signaling a decline in the appeal of Canadian offerings.
The U.S. dominance in Bitcoin ETFs can be traced back to the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January 2024, a milestone that propelled the country to the forefront of the global crypto ETF market. As the world’s largest ETF market, the U.S. has long held a commanding lead in this space, with ETFs comprising a significant portion of global assets. According to industry experts, the established investor trust and familiarity with ETFs in the U.S. played a crucial role in this market shift.
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Despite Canada’s early success in crypto ETFs, the U.S. market’s more robust infrastructure and institutional support have led to a migration of capital toward U.S.-domiciled products. Canada’s crypto ETFs, while initially receiving strong attention and seeing inflows of $4.2 billion in 2021, experienced a notable reversal in 2024, primarily driven by the liquidity and investor participation advantages offered by U.S. products.
Experts believe that with the U.S. now firmly leading the crypto ETF market, it is unlikely that other regions will overtake the U.S. in terms of AUM for Bitcoin ETFs anytime soon. Meanwhile, European issuers are focusing on diversifying their offerings, such as providing staking yields, but the U.S. remains the dominant player in the sector.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
