In 2024, the US has emerged as the largest investor in spot Bitcoin exchange-traded funds (ETFs) globally, marking a significant shift in the crypto market landscape. Canadian spot Bitcoin ETF investors have increasingly been moving towards more liquid US alternatives, leading to the largest crypto ETF outflows in Canada’s history, totaling $707 million. This marks a significant change from when Canada, the first country to launch a spot Bitcoin ETF in 2021, saw substantial inflows.
The approval of US spot Bitcoin ETFs by the Securities and Exchange Commission in January 2024 has bolstered the country’s presence in the ETF market. This decision has led to the US accounting for the entirety of the world’s $44.2 billion crypto exchange-traded product inflows in 2024, solidifying its status as the largest holder of Bitcoin ETFs by assets under management (AUM).
Switzerland, which ranks second in this sphere, witnessed inflows amounting to just $630 million, heavily lagging behind the US. Experts attribute the American dominance to its role as the largest ETF market worldwide and its extensive investor base with a history of embracing risk, especially in technology investments.
Conversely, Canada’s initial stride in the Bitcoin ETF market in 2021 is overshadowed by the current outflow trend, driven by investor migration to US-based options that promise better liquidity and broader participation. According to industry observations, Canadian ETFs initially benefited from their pioneering status in the market, but the advent of US spot Bitcoin ETFs has drawn investors away.
This shift has left Canadian crypto ETFs as the only category in the country to experience outflows in 2024. With US Bitcoin ETFs leading globally, industry experts suggest that no other market is poised to surpass the US in AUM for Bitcoin products in the foreseeable future.
