To say that the Spot Bitcoin Exchange Traded Fund (ETF) has exceeded expectations in its first year on the market is an understatement. In fact, it might be more accurate to say that it shocked the very foundations of the industry.
“How big was the Bitcoin ETF in its first year?” James Seifert, ETF analyst at Bloomberg Intelligence, wrote of X: “Massive.”
BlackRock's iShares Bitcoin Trust (IBIT) had the most successful launch in U.S. ETF history, amassing more than $52.3 billion in assets in its first year (due to large inflows and a sharp rise in Bitcoin prices). combination) and Seyfert, according to the paper.
Three of the other Spot Bitcoin ETFs, Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB), are also among the top 20 launched US ETFs in history It's in.
Matt Horn, head of digital asset strategist at Fidelity Investments, said the past 12 months have been a “momentous time” for the crypto industry. In fact, FBTC is the fund management giant's largest listed product, with nearly $19 billion in assets under management, according to its website.
“While we were optimistic about the launch of Bitcoin ETP, demand exceeded our expectations across all customer segments, including retail investors, advisors, institutional investors, and more,” Horn said. . “Given these products' impressive asset growth and year-over-year performance, we expect continued adoption in both advisor and institutional client segments.”
Where do we go from here?
Although some hedge funds and pension funds allocated small amounts of money to spot ETFs, the bulk of the inflows came from non-professional investors. However, things may change.
Mark Connors, founder and chief investment strategist at Risk Dimensions, said, “Some news agencies, financial advisors, and some U.S. financial firms even allow employees to own Bitcoin and altcoins in their personal portfolios. This record flow occurred despite the ban,” he told CoinDesk.
He added, “2025 flows will easily exceed 2024, with likely more support from RIAs/advisors and wire services, and price tailwinds.”
2025 could be “the year of crypto ETFs,” according to Nate Geraci, president of ETF Store. He predicts that more than 50 additional crypto ETFs, including Spot Solana and XRP funds, as well as options-based and equity-based products, will be approved under the new guidance of the U.S. Securities and Exchange Commission. There is.
“Gary Gensler always referred to cryptocurrencies as the ‘Wild West,’” Geraci wrote in a post on ETF Educator. “I think under the Trump administration, that’s exactly what you get from an ETF perspective.”
