Canadian Crypto ETF Is the Only Asset Class to See Outflows in 2024

Key Points:

• Canadian ETFs surpassed C$500 billion in assets for the first time in 2024, with C$76 billion in inflows.
• Canadian crypto ETFs saw outflows of C$1.1 billion, with US Bitcoin ETFs gaining an edge due to approval and lower pricing.

According to Bloomberg, assets of Canadian ETFs break above C$500 billion ($346 billion) for the first time in 2024, buoyed by heavy inflows and a raft of new fund launches.

Read more: Coinbase License In Canada Is Now Approved Amid Regulatory Compliance Push

US Stock ETFs Surge Ahead of Canadian Equity Funds

The country’s ETF market recorded record inflows, with US stock funds leading the charge and hauling in nearly C$22 billion in net new money. By year-end, US stock ETFs had swelled to some C$130 billion in assets, overtaking Canadian equity ETFs at C$102 billion.

The Canadian ETF industry benefited from a broad market rally, which helped push assets under management to C$519 billion at the end of 2024. The total inflow for the year reached C$76 billion, up 45% from the prior record in 2021, according to the National Bank of Canada.

Canadian Crypto ETFs Struggle as AS Competition Intensifies

Canadian crypto ETFs were the only segment to suffer outflows at C$1.1 billion due to strong U.S.-listed Bitcoin ETFs that gained earlier approval than their Canadian counterparts and are offering lower prices as well.

Nevertheless, it is still considered one of the pioneering countries to accept crypto ETFs with the allowance of Bitcoin and Ethereum ETF trading in 2021. Canadian crypto ETFs permit investors to keep crypto assets in tax-sheltered accounts such as Tax-Free Savings Accounts or Registered Retirement Savings Plans.