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U.S. ETFs See Record $1 Trillion Inflows in 2024, Bitcoin ETFs Add $50 Billion

Dec 30, 2024, 07:14 PM

Investors poured over $1 trillion into U.S.-based exchange-traded funds (ETFs) in 2024, setting a new annual record and surpassing the previous peak of $920 billion in 2021. This surge in inflows has pushed total assets in U.S. ETFs to exceed $10 trillion, reflecting a 30% increase from the beginning of the year. The growth was driven by strong demand for passive investment strategies, including S&P 500 funds, and the introduction of new products such as Bitcoin ETFs, which added $50 billion in assets and contributed significantly to the inflows. Globally, ETF inflows reached $1.4 trillion in 2024. Meanwhile, traditional stockpicking funds experienced a record $450 billion in outflows as investors increasingly opted for lower-cost, passively managed alternatives. The shift highlights a broader trend of investors moving away from actively managed mutual funds, which have struggled to justify their higher fees amid underperformance relative to benchmarks.