Active ETFs raked in $9.8bn from investors in August, compared to passive funds’ $9.5bn. Over the last year, active ETFs made $1 more than passive funds for every $4.06. It may seem that the gap is larger but, in fact, three years earlier, passive funds accounted for $6.02 of every $1 generated by active ETFs.
Since 2021, assets managed in crypto-focused funds are declining. CoinShares published a report that discussed the crypto outflows of the last nine week. It stated that Bitcoin was responsible for 85% (455m) of the $455m generated in those nine weeks. Ethereum came in second with $4.8m.
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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). The crypto investment firm filed a lawsuit against the SEC in 2022 for refusing to launch a bitcoin exchange traded fund.
Investors are therefore cautious about investing in smaller currencies and hoping to find a spot bitcoin ETF. Grayscale spokesperson stated:
[This victory marks] Bitcoin is a major step forward for American Investors.