Exchange-traded funds, or ETFs, have been the talk of the town in 2024, with over $400 billion pouring into the market in the first half of the year. The launch of Bitcoin ETFs has been a significant factor in this surge, with more than $14 billion flooding into these funds since January. In particular, the iShares Bitcoin Trust (IBIT) has seen substantial inflows, while the Grayscale Bitcoin Trust (GBTC) has experienced outflows due to its high fees.
Apart from Bitcoin, actively managed funds and derivatives-based funds have also seen increased interest, with $124 billion and $14.5 billion flowing into these products, respectively. Issuers are capitalizing on the popularity of yield-focused funds by launching new high-yield ETFs at a rapid pace.
One standout trend has been the frenzy surrounding Nvidia Corp., with one fund, the GraniteShares 2x Long NVDA Daily ETF (NVDL), experiencing record inflows of $2.7 billion. NVDL has returned 370% so far this year, making it one of the best-performing funds of 2024. However, the fund is highly susceptible to the performance of its underlying stocks, particularly Nvidia, which is a significant component of many ETF portfolios.
Overall, the ETF market is experiencing a surge in interest and investment, driven by a combination of factors including the rise of artificial intelligence, the launch of Bitcoin ETFs, and the continued growth of the stock market. Investors are flocking to these funds in search of exposure to high-performing assets like Nvidia and Bitcoin, while issuers are responding with new launches to meet demand in the rapidly evolving ETF landscape.
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https://finance.yahoo.com/news/400-billion-frenzy-nvidia-crypto-120201767.html
