Bitcoin and Ethereum ETFs revolutionized the financial market in 2024, establishing themselves as one of the most important innovations in history, transforming digital investment.
2024 marked a historic milestone in the world of finance with the regulatory approval of Bitcoin and Ethereum spot ETFs. These exchange-traded funds, which waited a decade to receive the green light from financial regulators in the United States, dominated the investment market in a few months, redefining the way investors access cryptocurrencies and digital assets.
Considered one of the most disruptive innovations of the decade, spot ETFs removed technical and regulatory barriers, attracting both institutional and retail investors. This phenomenon not only cemented Bitcoin and Ethereum as legitimate financial assets, but also laid the groundwork for a new era in digital investing.
Bitcoin and Ethereum, undisputed market leaders
ETF Store CEO Nate Geraci highlighted that crypto-related exchange-traded funds led market inflows in 2024. He stressed that The eight largest funds launched last year belong to the cryptoasset sectorAccording to Geraci, this trend not only reflects the growing interest of investors in cryptocurrencies, but also the maturity of the market and confidence in regulated products as investment vehicles.
The success of these ETFs not only transformed the cryptocurrency investment landscape, but also had a significant impact on the prices of Bitcoin and Ethereum. In 2024, Bitcoin Hits New All-Time High Above $108.000While Ethereum surpassed $4.000This growth was largely driven by the massive inflow of institutional capital through ETFs, which reduced market volatility and attracted more conservative investors.
In addition, cryptocurrency ETFs helped legitimize these assets in the eyes of regulators and the general publicProducts like IBIT and ETHA have proven that cryptocurrencies can be integrated into the traditional financial system, opening the door for future innovations in the space.
An analysis of Bitcoin ETF dominance in 2024
The arrival of these exchange-traded funds on the market transformed the way investors access cryptocurrencies, offering a regulated and accessible way to participate in this dynamic financial space. With the approval of several Bitcoin ETF y Ethereum, investors have found new opportunities to diversify their portfolios and benefit from the continued growth of these cryptocurrencies.
Among all the Bitcoin ETFs launched, the iShares Bitcoin Trust (IBIT) by BlackRock emerged as the clear leader, establishing itself not only as the largest Bitcoin ETF, but also as a benchmark in the institutional adoption of cryptocurrencies. IBIT also broke several records, surpassing even funds unrelated to these digital assets.
In April 2024, just 3 months after its launch, IBIT became the fastest growing ETF in history, attracting an inflow of $13.000 billion at the time. In May, IBIT was declared The Bitcoin Spot ETF biggest in the world, with inflows exceeding $20.000 billion. By early November, IBIT managed to surpass IAU, BlackRock's gold exchange-traded fund, in assets under management and, ending the same month, broke a record of $40.000 billion dóhomes in total assets. In November, IBIT also recorded the largest weekly inflows of the entire exchange-traded fund market, which surpassed those of all new ETFs launched in 2024.
Commenting on this remarkable growth of Bitcoin investment funds, Larry Fink, CEO of BlackRock, commented that he would never have anticipated such demand from both the retail and institutional sectors for the cryptocurrency. This statement underlines not only the growing appeal of Bitcoin, but also how it has transformed market expectations regarding cryptocurrencies as legitimate assets in investment portfolios.
The SEC's historic approval of the iShares Bitcoin Trust (IBIT) and other cryptocurrency exchange-traded funds marked a significant turning point in institutional investment in BTC. According to data from the Soso Value platform, US-listed Bitcoin spot ETFs closed 2024 with a total of $105.400 billion in total net assets.
Source: Soso Value
Ethereum ETFs in 2024
While Bitcoin ETFs led the way in crypto investment, Ethereum-based funds also saw a significant rise in their presence within the ETF market.
In July 2024, SEC-approved Ethereum-related ETFs began trading on the US stock market, allowing Ether to become the second cryptocurrency with approved exchange-traded products in the country. Although the reception of these exchange-traded funds does not compare to that of Bitcoin, experts stressed its success among investors, especially in the case of iShares Ethereum Trust (ETH), which established itself as the main reference in this segment.
Source: Soso Value
BlackRock has once again demonstrated its ability to dominate the cryptocurrency market with the launch of ETHA. This spot ETF, which began trading in July 2024, has amassed over $3.500 billion in assets under management (AUM) in its first six months, surpassing competitors such as the Grayscale Ethereum Trust (ETHE) and establishing itself as the largest Ethereum ETF in the world.
Although the growth of these ETFs has been lower, compared to Bitcoin ETFs, a key point that could accelerate their institutional and retail adoption this 2025 is staking. Several experts anticipate that the favorable regulations being prepared in the United States under the leadership of Donald Trump could lead to staking in ETH spot ETFs. This possibility, which would give investors a new way to earn returns, may be a key differentiating factor compared to Bitcoin ETFs, which do not offer this functionality, such as reported this medium.
Furthermore, it should not be forgotten that Ethereum, the second most capitalized cryptocurrency on the market, is also the largest decentralized finance (DeFi) and smart contract ecosystem in the crypto world. As investors are increasingly interested in the practical applications offered by this network, this could translate into increased demand for its exchange-traded funds.
Projections for the exchange-traded funds market in 2025
Experts' projections for the cryptocurrency-related exchange-traded funds market are optimistic this year. Both Bitcoin and Ethereum are expected to continue leading the way as new opportunities emerge within the crypto space. In this context, Geraci notes that growing institutional acceptance and continued improvement in regulation will likely continue to drive demand for these products and give rise to new ones, such as those expected Solana Spot ETFs.
In summary, 2024 was a breakthrough year for crypto-related ETFs. With Bitcoin and Ethereum leading this new financial chapter and the likelihood of a considerable diversification in the ETF offering in 2025 looking very clear, the investment community will have a wide range of possibilities to explore digital assets.
