On Tuesday, data from several research companies showed that ETFs and mutual funds have massively outperformed their counterpart passive funds by 57% during the 12 months from June 2022 to June 2023. After rising 43% from December 2022 to June 2023, 8212 funds and ETFs account for approximately $17trn in assets – in other terms, 55.9% of the U.S. fund market.
ETFs and mutual funds rise against their passive counterparts
In August alone, active ETFs garnered $9.8bn in investor cash compared to $9.5bn pulled by passive funds. For every $4.06 made from passive funds, active ETFs have gained $1 over the last 12 months. The gap appears larger; however, three years ago, passive funds registered $6.02 for every $1 of active ETFs.
That being said, assets managed by crypto-focused funds have been declining since 2021. A report from CoinShares discussed crypto outflows over the last nine weeks, suggesting that 85% of the $455m output from the last nine weeks was from Bitcoin. Ethereum followed further behind, totalling $4.8m output.
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Although Bitcoin is still charging ahead as a U.S. crypto giant, the currency fell on rocky ground during Grayscale Investment’s legal disagreement with the Securities Exchange and Commission (SEC). In 2022, the crypto investment firm sued the SEC for rejecting the launch of a bitcoin exchange-traded fund.
As a result, investors are cautious of directing money into smaller currencies, hoping for spot bitcoin ETF. A Grayscale representative stated:
[This victory marks] a monumental step forward for American investors, the bitcoin ecosystem, and all those who have been advocating for bitcoin exposure through the added protections of the ETF wrapper.
