To say that Bitcoin exchange-traded funds (ETFs) have exceeded expectations in their first year on the market is an understatement at best. Instead, it would be more accurate to say that they shook the industry to its core.
“How Big Are Bitcoin ETFs in Year 1?” Bloomberg Intelligence ETF Analyst James Seyphart Written on X. “particle.”
BlackRock’s iShares Bitcoin Trust (IBIT) has had the most successful launch in the history of U.S. ETFs, accumulating more than $52.3 billion asset value In its first year (a combination of large inflows and a sharp rise in the price of Bitcoin), according to Seyphart.
Three other spot bitcoin ETFs – Fidelity Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB) – were also among the top 20 US ETFs ever launched.
Matt Horn, chief digital asset strategist at Fidelity Investments, said the past 12 months in the cryptocurrency space have been “critically important.” In fact, FBTC is the fund management giant’s largest exchange-traded product with about $19 billion in assets under management, according to the company’s website.
“While we were optimistic about the launch of Bitcoin exchange-traded products, demand has exceeded our expectations across all client segments including individual investors, advisors, institutions and beyond,” Horn said. “Given that these products have seen tremendous asset growth and now have a year of performance, we expect to see continued adoption across both the advisor and institutional client sectors.”
Where do we go from here?
While some hedge funds or pension funds have allocated modest funds in spot ETFs, the majority of inflows have come from non-professional investors. However, That could change.
“The record inflows occurred despite stonewalling by some wire companies, financial advisors, and some U.S. financial companies that prohibited employees from owning bitcoin or altcoins in their personal wallets,” Mark Connors, founder and chief investment strategist at Risk Dimensions, told CoinDesk.
“With the potential for more support from RIA/advisers and telecommunications companies and price tailwinds, 2025 flows will easily exceed 2024,” he added.
According to Nate Geraci, president of ETF Shop, 2025 could be “the year of crypto ETFs.” He expects more than 50 other cryptocurrency ETFs will be approved under the new leadership at the SEC, including Solana and XRP spot funds, as well as options- and stock-based products.
“Gary Gensler always refers to cryptocurrencies as the ‘Wild West,’” Geraci wrote in a post on ETF mentor. “Under the Trump administration, I think that’s exactly what we’re going to get from an ETF perspective.”
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