Exactly one year ago, Bitcoin ETF products were given the go-ahead by the U.S. Securities and Exchange Commission (SEC) following a decade of anticipation. Initially, 11 different asset managers were granted permission to introduce these products. Since then, they have left a significant impact on the financial sector with remarkable achievements.
Standout Spot Bitcoin ETF Products
James Seyffart, Senior ETF Analyst at Bloomberg, recently displayed a chart that contrasted Bitcoin ETFs with their market equivalents. According to this chart, the BlackRock iShares Bitcoin Trust (IBIT) has the highest asset valuation after a year, surpassing $50 billion in Assets Under Management (AUM) by December 2024.
Currently, IBIT has surpassed its main competitor, the Invesco QQQ Trust Series, with a market value of an impressive $52.33 billion. It’s worth noting that the Invesco QQQ Trust Series is one of the most substantial players in the global financial arena, holding a value of approximately $18.3 billion.
The Fidelity Wise Origin Bitcoin Fund (FBTC) ranked third in the top performances of all-time ETF launches. A year later, its managed assets totaled approximately $19.681 billion. Competing ETF products from ARK and 21Shares, along with Bitwise, amassed around $4.391 billion and $3.3829 billion respectively.
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1. The Fidelity Wise Origin Bitcoin Fund (FBTC) achieved third place among the best ETF launches in history. After a year, its assets under management reached an impressive $19.681 billion. In comparison, other ETFs from ARK, 21Shares, and Bitwise gathered around $4.391 billion, $3.3829 billion respectively.
As per Seyffart’s analysis, even after accounting for inflation, this Bitcoin ETF’s assets would still rank among the top 20. This performance is consistent with historical data showing that Bitcoin and Ethereum funds performed exceptionally well across 740 ETF launches in the year 2024.
Tough Competitor To Gold ETFs
In light of the advancements made by Bitcoin ETF products, Fox Business Journalist Eleanor Terrett additionally revealed some intriguing figures. According to her report, these ETF products currently own approximately 1 million units of Bitcoin, which equates to over $95 billion at today’s prices.
In simpler terms, these newly emerged ETF (Exchange-Traded Fund) providers not only reached gold’s previous records but even surpassed the total assets under management (AUM) of gold by approximately $128 billion, with their Bitcoin-related products.
A little more on just how significant the $BTC ETFs have been:
Over a period since their launch, Exchange-Traded Funds (ETFs) have amassed more than 1 million Bitcoins, equating to approximately $95 billion in value as of current market prices.
4 of the ETFs are now in the top 20 best performing U.S. ETF launches of all time — @BlackRock’s…
— Eleanor Terrett (@EleanorTerrett) January 10, 2025
According to Terrett’s observation, Gold Exchange-Traded Funds (ETFs) reached a $128 billion milestone after about 20 years. In contrast, Bitcoin ETFs managed this record in just one year. Given the rapid growth rate of Bitcoin compared to gold, Michael Saylor suggests investors should consider switching from gold to Bitcoin.
Price Impact and Institutional Embrace
Bitcoin ETF products serve as a significant driving force for demand on the current market. Due to continuous buying, Bitcoin reached its peak price of $108,000 in December 2024, following numerous new highs recorded over previous months, according to an earlier Coingape report.
Global institutional investors have been rapidly purchasing Bitcoin ETFs in the U.S., a trend that has taken many by surprise. As Donald Trump’s crypto-friendly administration prepares to take office this month, there is anticipation for more welcoming regulations aimed at enticing businesses towards Bitcoin.
Matt Hougan, Chief Investment Officer at Bitwise, is equally confident that these funds will perform well in 2025. He emphasizes that they are among the key drivers fueling the persistent demand for Bitcoin in 2025.
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2025-01-10 23:56