Latest news with #EricBalchunas
Arabian Post
5 hours ago
- Business
- Arabian Post
Bitcoin ETF Fees Eclipse S&P 500 For First Time
BlackRock's iShares Bitcoin Trust has overtaken its flagship S&P 500 ETF, IVV, in annual fee revenue, marking a significant shift in investor interest. IBIT now generates approximately $187.2 million a year, edging ahead of IVV's $187.1 million—remarkable given IBIT's substantially smaller asset base and higher fees. Since launching in January 2024, IBIT has attracted roughly $52 billion in net inflows—nearly 96% of all capital entering U.S. spot Bitcoin ETFs—and now accounts for more than 55% of the category's assets. Its success has propelled assets under management to around $72–75 billion, with the fund achieving the fastest-ever climb to $70 billion in just 341 trading days. The rapid accumulation reflects shifting institutional sentiment. Analysts note that investors are increasingly willing to pay premium fees—IBIT charges 0.25% versus IVV's mere 0.03%—for access to Bitcoin exposure within trusted regulated vehicles. Nate Geraci, president of the ETF Store, said the milestone 'reflects both surging investor demand for Bitcoin and significant fee compression in core equity exposure'. ADVERTISEMENT While fee revenue for IBIT now tops IVV, critics caution that underlying volatility in Bitcoin has diminished, bringing it closer to traditional equity benchmarks. ETF analyst Eric Balchunas noted that IBIT's volatility—once over five times that of equities—has softened significantly, attributing this partly to institutional scale and maturing market dynamics. IBIT is also directing the vast majority of new capital entering spot Bitcoin ETFs. Over the past 15 trading days, U.S. spot Bitcoin ETFs have drawn nearly $5 billion in inflows; IBIT alone captured more than 80% of this flow, including $112 million on the final trading day of June. Its individual inflow streak totalled $3.8 billion before plateauing. Despite its dominance, IBIT has not been immune to market fluctuations. Bitcoin-related ETFs experienced a $342 million outflow in a single day, ending a 15-day positive run. That pause included IBIT seeing no inflows that day, although analysts like Valentin Fournier at BRN Lead Research cautioned it may reflect a temporary cooldown rather than a shift in sentiment. BlackRock's success with IBIT is emblematic of broader trends identified by financial research. According to S&P Global, appetite for digitally‑focused funds remains robust, particularly where institutional frameworks offer clarity and accessibility. The Financial Times highlighted that active ETFs—especially crypto and options‑focused products—are capturing disproportionate fee income relative to passive counterparts, driven by higher demand and pricing flexibility. Regulatory stability since January 2024 has facilitated IBIT's ascent, making it easier for large-scale investors to allocate to cryptocurrency via mainstream platforms. This institutional flow has, in turn, helped reduce price volatility in Bitcoin itself, narrowing the gap with traditional ETFs. Yet questions persist about longevity. IBIT's future depends on sustaining investor interest amid macroeconomic shifts and evolving competition. Emerging Bitcoin ETFs from competitors like Fidelity's FBTC and Ark Invest's ARKB are gaining attention, though they trail IBIT significantly. Institutional scrutiny also remains vigilant, focused on fund liquidity, asset custody, and regulatory compliance. BlackRock is expanding its digital asset strategy beyond the U.S., with plans to introduce a bitcoin ETF in Europe, potentially domiciled in Switzerland, contingent on MiCA framework compliance. BlackRock's benchmark S&P 500 ETF, IVV, retains its massive $600+ billion in assets. Though still the industry cornerstone, its fee income has been outstripped for the first time—by a product founded on the dynamic, historically volatile Bitcoin market. The shift underscores a pivotal moment in ETF evolution, as Bitcoin transitions from niche digital asset to mainstream portfolio inclusion.
Crypto Insight
4 days ago
- Business
- Crypto Insight
‘All systems go' for Solana staking ETF to launch any moment: Analysts
ETF provider REX Shares is on the verge of launching the first-ever Solana staking exchange-traded fund (ETF), following what analysts describe as a successful response to feedback from the US Securities and Exchange Commission (SEC). 'Rex also filed an updated prospectus, which totally filled in. Add it all up, and it appears as though all systems go for imminent launch,' ETF analyst Eric Balchunas said in an X post on Friday. SEC 'comfortable' with the unique ETF structure ETF Store president Nate Geraci said in an X post on the same day that it looks like the SEC are open to REX Shares incredibly rare c-corp business structure used in the fund, which the SEC previously argued conflicts with the 6C-11 rule, also known as 'the ETF rule.' 'Looks like they're comfortable pushing forward w/ their creative '40 Act structure,' Geraci said. 'Here we go,' he added. He previously said on May 29 that REX Shares had taken 'the regulatory end-around' with this approach. Echoing Geraci's sentiment, ETF analyst James Seyffart said the way that REX Shares structured their Solana staking ETF proposal was 'very rare in the ETF world' as it bypasses the standard 19b-4 filing process that most other crypto ETF providers have used for staking proposals, which are all still awaiting a decision from the SEC. Analysts say the SEC's comments have been addressed Geraci said, 'Looks like they believe comments have been resolved.' 'Crypto ETF summer commences,' he added. Balchunas cited an email screenshot to confirm that REX Shares have addressed the SEC's comments. 'So they are good to launch, it looks like. Wow,' Balchunas added. In a post on the same day, REX Shares said that 'the first-ever staked crypto ETF' in the US is coming soon. Staking in crypto ETFs has been highly anticipated by the industry REX Shares explained that its REX-Osprey SOL and staking ETF is designed to track the performance of Solana while generating yield through onchain staking. 'A new era of yield-generating crypto exposure is here,' REX Shares said. Staking has been a long-awaited feature by many ETF spectators in the industry. On March 20, BlackRock's head of digital assets, Robbie Mitchnick, described the firm's Ether ETF as a 'tremendous success' but acknowledged that the ETF is 'less perfect' without staking. Source:
Yahoo
5 days ago
- Business
- Yahoo
ETF Flows Set for Record; Big Money Enters High-Risk Funds
U.S. exchange-traded fund flows are on track to break records again in 2025, with $1.2 trillion projected to pour into the market despite modest performance by stocks and bonds, according to a Bloomberg Intelligence midyear outlook report. The relentless appetite for ETF products has persisted even as U.S. stocks have posted volatile performance and gained around 3% year to date. Bonds have also gained roughly 3% as well, the report showed. The continued surge in ETF flows demonstrates how the product has become a default vehicle for investors regardless of market conditions, driven by innovation in active management and crypto products alongside sustained demand for cheap beta exposure, Bloomberg Intelligence Analysts Eric Balchunas and Athanasios Psarofagis said. ETF flows usually slow when markets cool but not this year. A steady stream of cash is going into gold and cash-like ETFs too, according to the outlook. Another reason flows are so robust is that active management has entered the market in full, adding to steady, passive flows. The products as a group are taking in 40% of net flows despite holding only 10% of the assets, the analysts found. Most of the flows are going to active equity, a category that was dormant for the first 20 years that ETFs existed, according to the report. The best-selling active funds this year include a diverse group of covered call, CLO and thematic ETFs. Some high-risk active ETFs are also pulling in "big money," such as the YieldMax MSTR Option Income Strategy ETF (MSTY) and the Direxion Daily TSLA Bull 2X Shares (TSLL), the report found. Beyond the flows, more than 900 ETFs may launch this year, crushing last year's record of just over 700. Nearly 90% of this year's launches are active, Bloomberg Intelligence data show. This year, 16% of ETF launches have been some form of a single-security strategy that uses either leverage or options overlays, according to the outlook. Retail trades made up about 20.5% of U.S. equity volume in the first quarter, up from 17% a year earlier. While the average fee across the ETF industry is around 59 basis points, single-stock strategies command a premium, averaging 91 basis points, according to the report. For those with leverage or derivatives overlays, fees often exceed 100 basis points. Assets in leveraged long ETFs have nearly returned to their record $101 billion, highlighting the strong risk appetite still present among investors, the research | © Copyright 2025 All rights reserved Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Launching The JPMorgan Active High Yield ETF
JPMorgan launches the new Active High Yield ETF (ticker: JPHY) with a portfolio dedicated to at least 80% junk-rated bonds. Bloomberg's Eric Balchunas has more on JPMorgan. (Source: Bloomberg)
Yahoo
21-06-2025
- Business
- Yahoo
Spot Crypto ETF Filings for XRP, SOL, DOGE Among Those With Overwhelming SEC Approval Odds: Bloomberg
Odds are stacked that the U.S. Securities and Exchange Commission approves most of the filed crypto exchange-traded funds, including the various XRP ETFs, by their respective deadlines, according to Bloomberg Analysts James Seyffart and Eric Balchunas. 'We are raising our odds for the vast majority of the spot crypto ETF filings to 90% or higher,' Bloomberg Intelligence's James Seyffart said in a post on X. 'Engagement from the SEC is a very positive sign in our opinion.' According to the analysts, ETFs for assets like Litecoin, Solana, XRP, Dogecoin, and Cardano all now sit at or above the 90% mark. These estimates reflect growing optimism from ETF specialists following a wave of 19b-4 acknowledgements and S-1 amendment requests from the Securities and Exchange Commission. Analysts view this back-and-forth process as a signal that the SEC is now more willing to work with issuers. The only asset lagging behind is SUI, filed solely by Canary. Bloomberg assigns it a 60% chance of approval, citing a lack of regulated futures and regulatory uncertainty. Bettors on Polymarket are also feeling optimistic. They are giving a 98% chance that an XRP ETF gets approved this year, and a 91% chance a SOL ETF gets the green light. It's also likely that a DOGE ETF gets a go-ahead, with bettors giving that a 71% chance of happening.
