The ETF Playoffs: Time to Crown a Champion

The ETF Playoffs have reached the final round. This weekend, spot bitcoin ETFs will square off against artificial intelligence to see who gets to be the champion of 2024! The winners were determined by vote on Exchange’s LinkedIn page. With the championship nigh, voting for the winner will open soon.

A Tight Final Four Round

The final four match was a battle for the ages. Spot bitcoin took an early, dominant lead, while AI fought off a surging actively managed fixed income. Equal-weight large caps had a sleepy round, despite their compelling investment case.

Actively managed fixed income went far, but its Cinderella story ends here. The finals have been determined.

Spot Bitcoin ETFs vs AI

The two investment ideas advancing are spot bitcoin ETFs and AI. Investors are eager to be forward looking, and in 2024 will seek to capitalize on new ideas that could challenge the status quo.

Cryptocurrency is coming off of the “crypto winter.” The SEC approval of spot bitcoin products was a shot in the arm for crypto, but it had quietly been gaining value and performing even before the spot products got their long-sought approval.

Artificial Intelligence is a theme that its proponents say could touch every corner of the market. Large language models are seeing increased popularity and many are touting an AI future as inevitable.

Headwinds and Tailwinds

Now it is up to you, the investor, to choose the ETF champion of 2024. But we’re not going to have vote without an understanding of the headwinds and tailwinds for each theme.

Artificial Intelligence is the obvious favorite in this matchup. Its tailwinds are simply unreal. Venture capital money is pouring into firms that seek to develop AI or AI-adjacent products, and the sky’s the limit.

AI could touch on some of the fastest-growing sectors of the economy, transforming automation, healthcare, and manufacturing. That said, there are some compelling headwinds. Artists have begun using tools like Nightshade to prevent AI from scraping their work. The question of regulation looms large. Can AI continue to see explosive growth? If you think the answer here is yes, then Ai deserves your consideration for 2024 ETF Playoffs champion.

Meanwhile, spot bitcoin ETFs saw a jaw-dropping $4.6 billion in volume in their first day of trading. CNBC interviewed Todd Rosenbluth, who noted “This is a key milestone in the ETF industry. For a generation of investors who have been embracing ETFs as their go-to investment vehicle, this opens the door for them to get exposure to this emerging asset class.”

Of course, crypto still face some of the hurdles that lead to the crypto winter. Institutions have yet to fully embrace it. If you think spot bitcoin ETFs will open the door to codify this new asset class, then they deserve your consideration for 2024 ETF Playoffs champion.

Register for Exchange 2024 today. 

For more news, information, and analysis, visit VettaFi | ETF Trends.