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The introduction of exchange-traded funds (ETFs) in the United States marked a historic milestone for the cryptocurrency market. These spot bitcoin ETFs, which was broadcast for the first time In the United States on January 11, 2024, it was a massive success in just one year, making it the greatest ETF launch in history.
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Currently, Spot Bitcoin ETFs in the US are now one of the main drivers of Bitcoin price growth and have played a huge role in Bitcoin breakout to the top $100,000. Furthermore, US-based Spot Bitcoin ETFs now exist Collectively the largest holders of Bitcoin.
Performance metrics for US spot bitcoin ETFs
For years, the US Securities and Exchange Commission (SEC) has resisted approving spot bitcoin ETFs, making its final approval in January 2024 a notable turning point for the cryptocurrency industry. In particular, the SEC approved the first 11 applications for the Spot Bitcoin ETF on January 10, 2024.
All Spot Bitcoin ETFs have shown positive performance In their inaugural year Except for grayscale GBTC. The launch of spot Bitcoin ETFs, like these ones, has been met with record enthusiasm Recorded the highest trading volumes Of any ETF launch in history within the first few days of its operation.
Aside from opening up the Bitcoin and cryptocurrency industry to traditional investors who would otherwise not invest in cryptocurrencies, many large Bitcoin holders have also seen ETFs as the best way to invest in order to take advantage of their regulatory clarity.
especially, BlackRock’s iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund She led the charge with large flows All year round. These two funds quickly established themselves as dominant players, with each seeing inflows of more than $3 billion during their first 20 days of trading.
At the time of writing, the US-based Spot Bitcoin ETFs now collectively control about $107.64 billion in bitcoin assets, representing about 5.75% of the total bitcoin market capitalization, according to Data from SoSoValue. Since they began trading one year ago, these ETFs have seen a total cumulative net inflow of $36.22 billion.
In terms of cumulative net inflows, IBIT saw the highest inflow amount at $37.67 billion, while FBTC followed with $12.16 billion. These two items were enough to offset the net outflows of $21.57 from the pre-existing Grayscale Bitcoin Trust, which was converted into the Spot Bitcoin ETF.
Other ETF providers have also seen cumulative net inflows in the past year, with the ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF also reaching $2.49 billion and $2.43 billion, respectively, at the time of writing. However, the remaining seven ETF providers have yet to cross the $1 billion threshold in cumulative net flows, suggesting a more uneven distribution of investor interest across the industry.
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Where do Bitcoin ETFs go from here?
The only way for Spot Bitcoin ETFs is to go up, especially on the longer time frame in 2025 and beyond. Crypto investors Optimists He shifted a significant influx of capital into these ETFs in anticipation Positive policies for encryption will be introduced By the incoming Trump administration.
At the time of writing, Bitcoin is trading at $94,057.
Featured image from Pexels, chart from TradingView
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