The iShares Bitcoin Trust (IBIT) ETF has outperformed the market this year thanks to Bitcoin’s strong trend. It has risen by over 50%, while the Nasdaq 100, S&P 500, and Dow Jones indices have jumped by less than 20%.
This trend goes far since Bitcoin has beaten traditional assets like stocks since its inception. Bitcoin has risen by over 16,000% since 2014, while the Nasdaq 100 and S&P 500 indices are up by less than 200% in the same period.
More data shows that the iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin ETF (FBTC) are some of the best-performing ETFs this year in inflows. IBIT has added over $19 billion in assets, making it the fourth biggest one after the Vanguard S&P 500 (VOO), iShares S&P 500 (IVV), and Invesco QQQ (QQQ). The FBTC has brought in $9.9 billion in assets.
This year, the IBIT fund has done better than other bigger and popular ETFs. It has beaten the Vanguard Total Market Index (VTI), which has added over $17.8 billion, and the SPDR Portfolio S&P 500 ETF, which added $10 billion.
Also, the fund has done better than the iShares Core US Aggregate Bond ETF (AGG), which has added $11.3 billion, and the Schwab US Dividend Equity ETF (SCHD), with its $2 billion inflows.
This performance is likely because the IBIT ETF is new, and many institutional investors have decided to invest. A recent report showed that some of the biggest institutional holders of spot Bitcoin ETFs are the likes of Millenium Management, Susquehanna, Morgan Stanley, and Jane Street.
The performance is also good for the recently launched spot Ethereum ETFs. Historically, Ether outperforms Bitcoin, meaning that it could attract substantial inflows. Most of these flows will come from institutions instead of retail investors.
Many retail investors are expected to opt for real Ethereum because of its staking features. Staking is a process where investors provide their coins to validators and then earn a return. Data shows that the average staking reward is an APR of 3.5%.
