Spot Bitcoin (CRYPTO: BTC) ETFs, which hit the 1-year mark last week, had a banner first year transforming the Bitcoin market and bridging crypto with traditional finance.
Approved by the Securities and Exchange Commission on Jan. 10, 2024, and hitting the market the following day, the total net assets held by the ETFs surged to $129 billion in 2024. BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) alone gained $40.8 billion in inflows, as of December 2024, according to data by Coinshares issued to Cointelegraph.
The fund dominated the competition, pulling in nearly three times more inflows than its closest rival. The Fidelity Wise Origin Bitcoin Fund (NASDAQ:FBTC) was the only other spot Bitcoin ETF to cross the $10 billion mark in inflows.
Bitwise Bitcoin ETF (NYSE:BITB) and ARK 21Shares Bitcoin ETF (BATS:ARKB) were the only others to clock in inflows in the billions.
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Market conditions and interest rate cuts helped push Bitcoin above $90,000, amid broader enthusiasm that included Donald Trump‘s pro-crypto statements. However, as institutional investors dominated the market, spot ETFs provided retail investors an easier way to invest in crypto. US Spot BTC ETFs now control 5.74% of Bitcoin’s total market cap.
But the question is, can the top 2024 gainers keep up the momentum in 2025?
Seems so. The raging demand for Bitcoin ETFs is driving the price as well as price outlook for Bitcoin, northward. In December 2024, U.S. spot Bitcoin ETFs amassed 51,500 Bitcoin—272% more than those mined—creating a market supply-demand imbalance, according to Apollo and Blockchain.com, reported by Coindcx.
Analysts at VanEck and Bitwise expect growing institutional interest in 2025, supported by ETF products, with price predictions for Bitcoin ranging between $180,000and $200,000 by the end of 2025.
In fact, Research firm Bernstein expects Bitcoin ETF inflows to surpass $70 billion in 2025, citing accelerated institutional adoption as a key impetus as regulatory barriers and resistance ease.
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