ETFs are killing it in 2024

Global Industry of exchange-traded funds The bank is wrapping up its best year ever, with record inflows of $1.4 trillion through late December, pushing total assets to $14 trillion, according to Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors.

“Within active equity and active fixed income, as well as ‘other’ active strategies, they achieved record inflows of $150 billion, $100 billion, and $20 billion, respectively.” Bartolini noted.

Along with the rise in active funds, investors have demanded new ETFs on the scene.

“Another reason has to do with the launch of crypto ETFs. You’ve seen Spot Bitcoin ETFs pop up now in January, and the inflows have been crazy,” Sumit Roy, senior ETF analyst at ETF.com, told FOX Business.

Since its launch on January 5, 2024, the iShares Bitcoin Trust ETF, or IBIT, has added more than $50 billion in assets, according to the company, making it the best exchange-traded product in history.

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“The inflows into IBIT since its launch underscore investors’ preference for exposure to Bitcoin through the convenience and quality of an exchange-traded product. The market has witnessed a renewed sense of optimism in anticipation of positive regulatory action for Bitcoin and cryptocurrencies. We remain focused on educating investors and providing easy and transparent access to Bitcoin.” A BlackRock spokesperson told FOX Business in November.

Bitcoin has advanced more than 122% this yearIt reached an all-time high of $106,734 and has since pulled back from those levels. The cryptocurrency industry got a boost after President-elect Donald Trump won the White House and promised a more favorable regulatory environment for cryptocurrencies.

Trump Nominated by former Securities and Exchange Commission official Paul Atkins, He is the industry favorite to replace current SEC Chairman Gary Gensler in January.

Another driver is ETFs which are more “tactical” allowing you to trade on both sides of the trade. These ETFs are the four best-performing ETFs of 2024, as tracked by VettaFi, rising between 428% to more than 178%, far outpacing the S&P 500’s 26% rise through Monday.

“Whether someone has an opinion that the market is going to go up or down in the short term, we have these tools for them,” Ed Egielinsky, managing director at Direxion, told FOX Business.

Shares of the company’s Direxion Daily NVDA Bull 2X are up more than 300% this year. It helps investors capture the rise and/or fall of Nvidia’s beloved AI chip. “Single share, leveraged inverse single share, we just crossed six billion with the franchisee,” he added.

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The company now has 13 individual stock ETFs, with potential plans to expand in 2025.