A Panoramic Review of Crypto Spot ETFs in 2024: 1 Year, $40 Billion

Original author: Fairy, ChainCatcher

اصل ایڈیٹر: نیان کنگ، چین کیچر

2024 is a historic year for the کرپٹوcurrency market. In the past decade, the U.S. Securities and تبادلہ Commission has rejected at least 30 applications for Bitcoin spot ETFs, but on January 11, 2024, a historic turning point came. The U.S. Bitcoin spot ETF was officially approved for listing, with a trading volume of $4.6 billion and a net inflow of $628 million on the first day. Soon after, Hong Kong, Australia and other countries also launched Bitcoin spot ETFs, further promoting the legalization of global crypto assets. As of press time, the asset size of U.S. crypto ETFs has exceeded $122.39 billion, and Hong Kong has reached $467 million.

2024 is the year when crypto assets truly turn into mainstream assets. According to the latest 13-F filing, all types of institutions are currently holders of crypto ETFs, including endowment funds, pension funds, hedge funds, investment advisors, and family offices. In this wave of mainstream crypto assets, ETFs for other digital assets such as Solana and XRP are also gradually coming into the public eye, further laying the groundwork for development in 2025.

This article will review the key milestones of crypto spot ETFs in 2024, analyze in detail the market performance of crypto ETFs in this year, and look forward to the development prospects of crypto ETFs in 2025.

Key milestones: The year crypto spot ETFs were born

Bitcoin Spot ETF 2024 Timeline

Back to the early morning of January 11, 2024, the entire cryptocurrency industry held its breath, and global investors nervously watched the final ruling on the US Bitcoin spot ETF. Finally, the words officially approved appeared before everyone, and the Bitcoin spot ETF was successfully launched, fulfilling everyones expectations for many years.

On the first day, the Bitcoin spot ETFs trading volume exceeded $4.6 billion, and the Bitcoin spot ETF had a net inflow of $628 million. In the first three days of listing, the trading volume was close to $10 billion.

On January 19, just one week after trading, the assets under management of the US Bitcoin ETF exceeded those of the silver ETF, becoming the second largest ETF commodity category in the United States.

With the United States passing the Bitcoin spot ETF, Hong Kong was unwilling to lag behind. On April 15, Hong Kong approved BTC and ETH spot ETFs in principle; on April 24, Hong Kong Bitcoin spot ETF and Ethereum spot ETF were officially approved; on April 30, 6 virtual asset spot ETFs were listed on the Hong Kong Stock Exchange and opened for trading.

The Hong Kong spot cryptocurrency ETF raised approximately HK$2 billion on its first day, with a calculated net asset value of US$293 million. The total trading volume of the six ETFs on the first day was approximately HK$87.58 million (approximately US$12.7 million).

The launch of Hong Kongs cryptocurrency spot ETF has had a profound impact on the financial landscape of the Chinese community and is also an important step in further legalizing global cryptocurrencies. Hong Kongs crypto ETF adopts a physical subscription and redemption mechanism, providing a path for crypto assets to be converted into traditional financial assets.

Subsequently, various countries gradually began to approve and trade Bitcoin spot ETFs. On June 4, Australias first Bitcoin spot ETF officially began trading, and the Thai Securities Commission also approved the first local Bitcoin spot ETF.

On September 23, the US SEC approved the listing of BlackRock Bitcoin ETF options on Nasdaq. On October 19, the SEC approved a variety of spot Bitcoin ETF options trading. The scope of Bitcoin-related derivatives has been further expanded, bringing options products that are both compliant and have trading depth to the market. Bitcoin ETF options allow investors to make portfolio allocations based on term, which is particularly suitable for long-term investment, injecting more compliance and trading depth into the market.

Ethereum Spot ETF 2024 Timeline

In 2024, Ethereum spot ETFs have made a series of important progress around the world. From Hong Kong to the United States, and then to Australia, many regions around the world are actively promoting the approval and listing of Ethereum spot ETFs. As the second dragon in the crypto market, Ethereum has officially come to the attention of traditional investors.

On April 24, the Hong Kong Bitcoin Spot ETF and Ethereum Spot ETF were officially approved. This is the first time that Ethereum Spot ETF has landed on a major exchange. The Hong Kong Ethereum Spot ETF had a net inflow of 14,200 ETH on the first day, with a trading volume of US$2.99 million.

On May 24, the U.S. SEC approved the 19 b-4 filing for the first spot Ethereum ETF. This filing is a key step for the legal trading of Ethereum spot ETFs in the U.S. market, opening the door for Ethereum spot products to officially enter the U.S. market.

On July 23, the crypto market once again ushered in a historic moment, with the U.S. SEC officially approving the Ethereum spot ETF. The Ethereum spot ETFs first-day trading volume exceeded $1.019 billion, with a net inflow of $106.6 million.

On November 8, the U.S. SEC once again postponed the decision to list spot Ethereum ETF options on the New York Stock Exchange. The document stated that the postponement is intended to conduct more analysis and public comments, especially on whether the proposed rule changes comply with the requirements of the Securities Exchange Act.

Other Crypto-Related ETFs 2024 Back in Time

After the approval of Bitcoin and Ethereum spot ETFs, Solana spot ETF also experienced a series of important advancements in 2024. On June 20, the first Solana spot ETF application in North America was submitted, marking the official entry of Solana ETF into the public eye. Subsequently, 21 Shares and VanEck also submitted applications for Solana ETF to the SEC.

On August 8, the Brazilian Securities and Exchange Commission approved the world鈥檚 first Solana spot ETF, and on August 21, Brazil approved the second Solana ETF. This is a pioneering step for Brazil, bringing more optimism to crypto supporters.

Solana spot ETFs application in the United States continues. On November 22, Cboe submitted 4 Solana spot ETF listing applications to the US SEC. On December 4, Grayscale sought to convert its Solana Trust Fund into a spot ETF and list it on the New York Stock Exchange. However, sources immediately revealed that the SEC has notified at least two Solana spot ETF applicants that their submitted 19 b-4 documents will be rejected. This news shows that the United States is still cautious about Solana spot ETF.

In addition to Solana, XRP is also a focus of institutional attention. Currently, Bitwise, 21 Shares and WisdomTree have submitted XRP spot ETF applications in the United States.

In addition, various types of crypto-related ETFs were launched or entered the application stage in November and December, ranging from single crypto assets to multi-asset portfolios, from index-based to income-based. This trend marks the gradual mainstreaming of the crypto market and proves its further integration with the traditional financial system. Crypto assets are gradually evolving into one of the core assets recognized by global investors.

How did ETF data perform this year?

ETFs listed in the United States manage a total of more than $10 trillion in assets, of which $40 billion is invested in the cryptocurrency field. Crypto ETFs currently account for 0.4% of the overall ETF market. However, according to K 33 Research data , the net inflows of Bitcoin spot ETFs in 2024 account for 3.5% of all net inflows of US ETFs in 2024, which is significantly higher than traditional asset classes.

Since its launch, the flow rate of Bitcoin ETFs has been 4.5 times that of inflation-adjusted gold ETFs. Although the cumulative flow still lags behind gold, the asset management scale of US Bitcoin ETFs has exceeded that of gold.

Not only that, the US Bitcoin spot ETFs BTC holdings have exceeded 1.13 million, surpassing Satoshi Nakamotos Bitcoin holdings and becoming the worlds largest Bitcoin holder. These achievements undoubtedly show that the Bitcoin spot ETF is the most successful ETF in history.

As of December 24, the total net inflow of US Bitcoin spot ETFs reached $35.49 billion, with a total net asset value of $110 billion. Among them, BlackRock IBITs net asset value accounted for nearly 50%, reaching $53.7 billion. It is worth noting that IBITs asset size is equivalent to the sum of 50 ETFs (regional + single country) focusing on Europe, and these European ETFs have existed for 20 years.

Bitcoin spot ETF net inflow and Bitcoin price chart, source: sosovalue

The US Ethereum spot ETF had previously performed mediocrely, but since November, its inflows and liquidity have increased significantly.

On November 13, ETF issuer Bitwise announced the acquisition of Ethereum staking service provider Attestant. On November 20, 21 Shares announced the addition of a staking function to its Ethereum Core ETP product and renamed it Ethereum Core Staking ETP (ETHC). Coupled with the news of Trumps victory, the markets expectations for the introduction of a staking function in Ethereum spot ETFs have become stronger.

As of December 24, the total net inflow of the US Ethereum spot ETF reached $2.51 billion, with a total net asset value of $12.35 billion. On December 5, the net inflow reached $428 million, setting a historical record.

Among the US Ethereum spot ETFs, Grayscales ETHE has the highest net asset value, reaching $4.91 billion, followed by BlackRocks ETF, with a net asset value of $3.65 billion. The two together account for 69.3% of the total assets of US Ethereum spot ETFs.

Ethereum spot ETF net inflow and Bitcoin price chart, source: sosovalue

Which crypto ETFs will be approved in 2025?

Several Solana ETF applications will have their first review deadline from January 23 to 25, 2025. However, according to FOX Business reporter Eleanor Terrett, the U.S. Securities and Exchange Commission (SEC) has notified at least two SOL spot ETF applicants that their 19 b-4 filings will be rejected. At the same time, people familiar with the matter revealed that the SEC may not approve any new cryptocurrency ETF applications during the current administration.

Eric Balchunas, senior ETF analyst at Bloomberg, expects issuers to resubmit applications after the new SEC Chairman Paul Atkins takes office. Paul Atkins serves as co-chairman of the ٹوکن Alliance, a digital chamber of commerce dedicated to researching and promoting the development of the digital asset industry. His appointment may bring new possibilities for the approval of the Solana ETF.

The first review deadline for the 10 cryptocurrency index ETFs submitted by Bitwise to the SEC is January 18, 2025. The ETF covers a variety of mainstream crypto assets in the current market, including BTC, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Ethereum, Avalanche, and Bitcoin Cash.

The Bitwise Bitcoin and Ethereum ETF will have its first review deadline on January 30, 2025. The ETF is a proposed spot cryptocurrency index fund consisting of BTC and ETH, which aims to give investors balanced exposure to the worlds two largest crypto assets in an easily accessible format.

Additionally, the following crypto ETFs are awaiting approval:

XRP ETF

• Bitwise XRP ETF

• Canary XRP ETF

• 21 Shares Core XRP Trust

• Wisdomtree XRP Fund

Litecoin ETF

• Canary Litecoin ETF

HBAR ETF

• Canary HBAR ETF

In addition to ETFs, the approval of Ethereum spot ETF options will also be carried out in 2025. Bloomberg ETF analyst James Seyffart said that the SECs final decision may be made around April 9, 2025. However, the SEC is not the only decision-making body, and approval from the OCC and CFTC is also required.

Outlook 2025

In 2025, more crypto assets may enter the ETF field. Although regulatory challenges still exist, the continued participation of institutional investors and the gradual maturity of the market will provide more impetus for the future development of the cryptocurrency industry. We can foresee that crypto assets will no longer be just speculative tools, but will become an important part of the global investment portfolio, promoting the deep integration of traditional finance and digital assets.

The following are predictions from industry organizations and KOLs on the development of crypto ETFs in 2025:

Forbes predicts : Staking will be integrated into the Ethereum ETF for the first time in 2025. ETFs for other cryptocurrencies (such as Solana) will be launched soon, and there may be the launch of weighted crypto index ETFs.

Framework co-founder Vance Spencer predicts that the listing plan of other cryptocurrency ETFs except Bitcoin and Ethereum will be postponed to 2026.

Research firm Messari predicts that ETF inflows will continue to increase in 2025, especially as Grayscales GBTC turns to positive net flows, the launch of the spot Solana ETF in the next one or two years seems inevitable

Coinbase said : Looking ahead, industry attention is focused on the possibility that issuers will expand the asset range of ETFs to include more tokens like XRP, SOL, LTC, and HBAR, but we believe these potential approvals may only benefit a limited group of assets.

ETF issuer VanEck predicts : New SEC leadership (or possibly the CFTC) will approve multiple new spot cryptocurrency exchange-traded products (ETPs) in the U.S., including the VanEck Solana product. Ethereum ETP functionality has expanded to include staking, further enhancing its utility for holders, while both Ethereum and Bitcoin ETPs support physical creation/redemption. Whether the SEC or Congress repeals SEC Rule SAB 121, it will pave the way for banks and brokers to custody spot cryptocurrencies.

ETF issuer Bitwise predicts that Bitcoin ETFs will see more inflows in 2025 than in 2024. Trillions of dollars in funds managed by companies will begin to flow into Bitcoin ETFs.

This article is sourced from the internet: A Panoramic Review of Crypto Spot ETFs in 2024: 1 Year, $40 Billion

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