2024 Spot encryption ETF Report Card: Attracting $40 billion in funds within a year

2024 is a milestone year for the cryptocurrency market. On January 11, the United States approved the listing of the Bitcoin Spot ETF for the first time, breaking a history of multiple rejections over the past decade. The trading volume on the first day reached $4.6 billion, with a net inflow of $628 million. Subsequently, places like Hong Kong and Australia also launched Bitcoin Spot ETFs, promoting the legalization process of global encryption assets. By the end of the year, the asset scale of U.S. encryption ETFs had exceeded $122.39 billion, while Hong Kong reached $46.7 million.

2024 witnessed the transition of encryption assets to the mainstream. Various institutions, including donation funds, pension funds, and hedge funds, have become holders of encryption ETFs. In addition to Bitcoin, digital asset ETFs such as Solana and XRP are gradually entering the public eye, laying the groundwork for development in 2025.

This article will review the important milestones of the 2024 encryption Spot ETF, analyze market performance, and look ahead to the development prospects of 2025.

Key Milestones Review: The Year of the Birth of the Cryptocurrency Spot ETF

Bitcoin Spot ETF 2024 timeline

• January 11: The United States officially approved the listing of the Bitcoin Spot ETF.
• January 19: The assets under management of the Bitcoin ETF in the US exceeded that of the silver ETF.
• April 15: Hong Kong has in principle approved the Spot ETF for BTC and ETH.
• April 30: Six virtual asset Spot ETFs officially listed for trading in Hong Kong.
• June 4: Australia's first Bitcoin Spot ETF begins trading
• September 23: The United States approves Bitcoin ETF options trading.
• October 19: The United States approved the trading of multiple Spot Bitcoin ETF options.

Ethereum Spot ETF 2024 timeline

• April 24: Hong Kong approves Ethereum Spot ETF
• May 24: The US SEC approved the first Spot Ethereum ETF's 19b-4 filing.
• July 23: The US SEC officially approved the Ethereum Spot ETF
• November 8: The U.S. SEC delays decision on listing Spot Ethereum ETF options on the NYSE.

Other encryption-related ETFs 2024 progress

• June 20: North America's first Solana Spot ETF application submitted
• August 8: Brazil approves the world's first Solana Spot ETF
• November 22: US exchanges submitted listing applications for 4 Solana Spot ETFs to the SEC.
• December 4: An institution seeks to convert the Solana trust fund into a Spot ETF.
• Bitwise, 21Shares, and WisdomTree submitted XRP Spot ETF applications in the United States.

In November and December, various types of encryption-related ETFs were successively launched or entered the application stage, including single asset, multi-asset portfolio, index type, and income type, among others.

ETF Performance Data Analysis

By the end of 2024, the total assets managed by US-listed ETFs will exceed $10 trillion, with $40 billion allocated to the encryption field, accounting for 0.4%. However, in 2024, the net inflow of Bitcoin Spot ETFs will account for 3.5% of the total net inflow of US ETFs, far higher than traditional asset classes.

The liquidity of Bitcoin ETFs is 4.5 times that of inflation-adjusted gold ETFs. The amount held by the U.S. Bitcoin Spot ETF exceeds 1.13 million BTC, surpassing Satoshi Nakamoto's holdings and becoming the world's largest "Bitcoin holder".

As of December 24, the cumulative net inflow of Bitcoin Spot ETF in the United States is 35.49 billion USD, with a total net asset value of 110 billion USD. BlackRock's IBIT net asset value accounts for nearly 50%, reaching 53.7 billion USD.

The performance of the US Ethereum Spot ETF has significantly improved since November. As of December 24, there has been a cumulative net inflow of $2.51 billion, with a total net asset value of $12.35 billion. On December 5, a single-day net inflow of $428 million set a new historical record.

2025 Outlook for Encryption ETF

From January 23 to 25, 2025, multiple Solana ETF applications will face their first review deadline. The first review deadline for the 10 encryption index ETFs submitted by Bitwise is January 18. The review deadline for Bitcoin and Ethereum ETFs is January 30.

Other pending ETFs also include XRP ETF, Litecoin ETF, and HBAR ETF, among others. The final decision on the Ethereum Spot ETF options may be made around April 9, 2025.

Industry organizations and experts predict the development of encryption ETFs in 2025:

• The staking feature may be integrated into the Ethereum ETF
• Solana and other encryption currency ETFs are expected to be launched.
• Weighted encryption index ETF may appear
• The inflow of ETF is expected to continue to increase.
• New regulatory leadership may approve more Spot encryption ETPs
• Bitcoin ETF inflows in 2025 may exceed those in 2024.
• Hundreds of billions of dollars in institutional funds may start flowing into Bitcoin ETF

In 2025, the field of encryption asset ETF is expected to further expand, promoting the deep integration of traditional finance and digital assets. Although regulatory challenges remain, the continued participation of institutional investors and the gradual maturation of the market will provide more momentum for the development of the cryptocurrency industry.