Spot Bitcoin ETFs Exceeded Expectations in 2024, but Just Wait for 2025

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What to know:

  • The spot bitcoin ETFs have exceeded all expectations in their first year of trading.
  • BlackRock’s iShares Bitcoin Trust had the most successful launch in the history of U.S. ETFs.
  • Experts believe that the numbers in 2025 could exceed those of last year.

It’s more precise to express that spot bitcoin ETFs surpassed all assumptions during their debut year; in fact, a more fitting description could be that they left the entire industry astonished.

What was the size, or magnitude, of the initial year for Bitcoin ETFs? According to Bloomberg Intelligence ETF analyst James Seyffart, it was “remarkably large” or “extremely substantial.

In its initial year, the BlackRock’s iShares Bitcoin Trust (IBIT) set a new record for U.S. ETF launches by amassing over $52.3 billion in assets, primarily due to substantial investments and a significant increase in the value of bitcoin, as reported by Seyffart.

Among the highly successful U.S. ETF debuts, including the Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB), were three bitcoin-focused ETFs that made a significant impact.

Over the past year, crypto has experienced significant milestones, as stated by Matt Horne, head of digital asset strategists at Fidelity Investments. Notably, their largest exchange-traded product, FBTC, manages almost $19 billion in assets, based on information from the company’s website.

Though we were hopeful about the debut of Bitcoin ETPs, the interest surpassed our predictions from all types of clients, including individual investors, financial advisors, institutions, and more. Since these products have experienced significant asset growth and have been around for a year, showcasing their performance, we anticipate further adoption among both financial advisors and institutional clients.”

This version retains the original’s meaning but is rephrased in a more conversational tone, making it easier for readers to understand.

Where to go from here?

Although a portion of investment funds like hedge funds and pensions put in a small amount into the ETFs (Exchange-Traded Funds), most of the influx originated from regular or non-professional investors. Yet, this trend may shift in the future.

Record events involving cryptocurrencies took place, even though certain banking institutions, advisors, and American financial corporations restricted their employees from personally owning bitcoin or alternative coins in their investment portfolios, according to Mark Connors, founder and chief strategist at Risk Dimensions, as he spoke with CoinDesk.

He noted that with increased backing from Registered Investment Advisors, advisors, and wire houses expected, as well as the positive impact of market trends, the inflows for 2025 are likely to outpace those of 2024.

Nate Geraci, president of the ETF Store, anticipates that 2025 could mark a significant increase in approved Crypto ETFs. He expects around 50 new crypto ETFs to be given the green light under the leadership change at the U.S. Securities and Exchange Commission. These could potentially include funds for Solana and XRP, as well as options-linked and stock-based products.

In a post for The ETF Educator, Geraci stated that Gary Gensler often likened cryptocurrency to the “Wild West.” From his perspective under the Trump administration, he seems to suggest that this lawlessness will characterize any ETF-related decisions.

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2025-01-14 22:27