To say that spot bitcoin exchange-traded funds (ETFs) exceeded expectations in their first year on the market is an understatement at best. Instead, it might be more accurate to say that they have shocked the industry to its core.
“How big was the first year for Bitcoin ETFs?” Bloomberg Intelligence ETF analyst James Seyffart wrote on X. “MASSIVE.”
BlackRock’s iShares Bitcoin Trust (IBIT) had the most successful launch in US ETF history, accumulating more than $52.3 billion in assets in its first year (a combination of large inflows and the sharp rise in price of bitcoin), according to Seyffart.
Three of the other spot bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC), the ARK 21Shares Bitcoin ETF (ARKB), and the Bitwise Bitcoin ETF (BITB), were also among the top 20 US ETF launches of all time.
The last twelve months in crypto have been “momentous,” said Matt Horne, chief digital asset strategist at Fidelity Investments. In fact, FBTC is the fund management giant’s largest publicly traded product with nearly $19 billion in assets under management, according to the company’s website.
“While we were optimistic about the launch of bitcoin ETPs, demand exceeded our expectations across all customer segments, including retail investors, advisors, institutions and more,” Horne said. “Given that these products have seen tremendous asset growth and are now into a year of performance, we expect to see continued adoption in both the advisor and institutional client segments.”
Where to go from here?
While some hedge funds or pension funds allocated a modest amount of money to spot ETFs, most of the inflows came from non-professional investors. That, however, could change.
“The record flows came despite delays by some wire houses, financial advisors, and some US financial firms prohibiting employees from even holding bitcoin or altcoins in their personal wallets,” Mark Connors, founder and chief strategist, told CoinDesk. of Risk Dimensions investments.
“With increased support from RIA/Advisors and wirehouses likely and pricing tailwinds, 2025 flows will easily exceed 2024 flows,” he added.
According to Nate Geraci, president of ETF Store, 2025 could be the “Year of the Crypto ETFs.” It predicts more than 50 more crypto ETFs will be approved under new leadership at the U.S. Securities and Exchange Commission, including Solana and XRP spot funds, as well as stock and options-based products.
“Gary Gensler always referred to cryptocurrencies as the ‘Wild West,'” Geraci wrote in a post on The ETF Educator. “Under the Trump administration, I think that’s exactly what we’ll get from an ETF perspective.”
