How Funds Have Fared So Far
The launch of a physical Bitcoin exchange-traded fund (ETF) in the United States marks a historic milestone for the cryptocurrency market. These spot Bitcoin ETFs, First online Launched in the United States on January 11, 2024, it has been a huge success in just one year, making it the greatest ETF launch in history.
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At present, the spot Bitcoin ETF in the United States has become one of the main driving forces of Bitcoin price growth and has played a huge role in the rise of Bitcoin price. Bitcoin breaks above $100,000. Additionally, these U.S.-based spot Bitcoin ETFs are now available The collective is the largest holder of Bitcoin.
Performance Indicators for the U.S. Spot Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) has refused to approve a spot Bitcoin ETF for years, making the final approval in January 2024 a notable turning point for the crypto industry. In particular, the SEC approved the first 11 spot Bitcoin ETF applications on January 10, 2024.
All Spot Bitcoin ETFs Show Positive Performance in their first year Except for GBTC in grayscale. The launch of spot Bitcoin ETFs has sparked record enthusiasm as the funds Record highest trading volume Historically any ETF is launched within the first few days of its operation.
In addition to opening up Bitcoin and the crypto industry to traditional investors who would not invest in cryptocurrencies, many large Bitcoin holders also view ETFs as the best way to invest to take advantage of their regulatory transparency.
special, BlackRock iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund Leading the way with massive capital inflows annual. The two funds quickly established their dominance, each seeing inflows of more than $3 billion in the first 20 days of trading.
As of this writing, U.S. spot Bitcoin ETFs currently control a total of approximately $107.64 billion in Bitcoin assets, accounting for approximately 5.75% of Bitcoin’s total market capitalization. Data comes from SoSoValue. Since they began trading a year ago, these ETFs have accumulated net inflows of $36.22 billion.
From the perspective of cumulative net inflows, IBIT has the highest inflow amount, reaching US$37.67 billion, followed by FBTC with US$12.16 billion. Those two items were enough to balance out a net outflow of $21.57 from the Grayscale Bitcoin Trust, which had previously converted to a spot Bitcoin ETF.
Other ETF providers have also seen cumulative net inflows over 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, cumulative net inflows to the remaining seven ETF providers have yet to cross the $1 billion threshold, suggesting that investor interest is more unevenly distributed across the industry.
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Where do spot Bitcoin ETFs go from here?
The only way forward for spot Bitcoin ETFs is higher, especially on the longer time horizon of 2025 and beyond. cryptocurrency investors Very optimistic A lot of money is expected to pour into these ETFs A positive policy on cryptocurrency will be introduced The incoming Trump administration.
As of this writing, Bitcoin is trading at $94,057.
Featured images from Pexels, charts from TradingView
