Milestones and Outlook for the 2024 Encryption Spot ETF

2024 is a historically significant year for the cryptocurrency market. After years of rejection, the United States has finally approved the listing of the Bitcoin Spot ETF. This decision has not only sparked a warm response in the market but has also led multiple countries and regions around the world to successively launch cryptocurrency ETF products.

Key Milestones Review

Bitcoin Spot ETF

On January 11, 2024, the United States officially approved the listing of the Bitcoin Spot ETF. The trading volume on the first day exceeded $4.6 billion, with a net inflow of $628 million. Just a week later, the assets under management for the Bitcoin ETF surpassed those of the silver ETF, becoming the second largest ETF commodity category in the United States.

Shortly after, Hong Kong launched 6 virtual asset Spot ETFs on April 30. The fundraising scale on the first day was about HKD 2 billion, with a total trading volume of approximately HKD 87.58 million. On June 4, Australia and Thailand also successively approved their local first Bitcoin Spot ETF.

On September 23, the U.S. Securities and Exchange Commission approved the BlackRock Bitcoin ETF options listed on Nasdaq. On October 19, it further approved various Spot Bitcoin ETF options trading, expanding the scope of Bitcoin-related derivatives.

Ethereum Spot ETF

On April 24, Hong Kong approved the Ethereum Spot ETF, becoming the first Ethereum ETF product listed on a major exchange. In the United States, on May 24, the first Spot Ethereum ETF's 19b-4 filing was approved, and it was officially approved for listing on July 23. The trading volume on the first day exceeded $1.019 billion, with a net inflow of $106.6 million.

On November 8, the U.S. Securities and Exchange Commission delayed its decision on the listing of Spot Ethereum ETF options on the New York Stock Exchange, stating that more analysis and public input are needed.

Other encryption assets ETF

On June 20, the first Solana Spot ETF application in North America was submitted. On August 8, Brazil approved the world's first Solana Spot ETF, and on August 21, it approved the second one. On November 22, Cboe submitted listing applications for 4 Solana Spot ETFs to the U.S. Securities and Exchange Commission.

XRP has also become the focus of institutional attention, with multiple companies having submitted XRP Spot ETF applications in the United States. Additionally, various types of encryption-related ETFs are set to launch or enter the application stage in November and December, covering a range of types from single assets to multi-asset portfolios, and from index-type to yield-type.

ETF Market Performance

By the end of 2024, the total assets managed by ETFs listed in the United States will exceed $10 trillion, with approximately $40 billion invested in the encryption currency sector, accounting for 0.4%. However, the net inflow of Bitcoin Spot ETFs in 2024 will account for 3.5% of the total net inflows of all ETFs in the United States that year, significantly higher than traditional asset classes.

The BTC holdings of the U.S. Bitcoin Spot ETF have exceeded 1.13 million, making it the world's largest "Bitcoin holder." As of December 24, the total net inflow of the U.S. Bitcoin Spot ETF has reached $35.49 billion, with a total net asset value of $110 billion. Among them, BlackRock's IBIT accounts for nearly 50% of the asset value, reaching $53.7 billion.

The performance of the US Ethereum Spot ETF has significantly improved since November. As of December 24, the total net inflow reached $2.51 billion, with a total net asset value of $12.35 billion. On December 5, the net inflow for a single day set a historical record of $428 million.

2025 Outlook

In 2025, more encryption assets are expected to enter the ETF field. Although regulatory challenges still exist, the continued participation of institutional investors and the gradual maturation of the market will provide more momentum for the future development of the cryptocurrency industry.

Industry institutions and experts predict the development of encryption ETFs in 2025 includes:

• The staking feature may first be integrated into the Ethereum ETF
• Other cryptocurrencies ETFs such as Solana may be launched.
• Weighted encryption index ETF may be launched
• ETF inflow is expected to continue to increase
• New regulatory leadership may approve more Spot encryption exchange-traded products.
• Bitcoin ETF inflows in 2025 may exceed those in 2024.
• Funds managed by large institutions may begin to flow into Bitcoin ETFs

With the continuous development of encryption ETFs, crypto assets are expected to become an important component of global investment portfolios, promoting the deep integration of traditional finance and digital assets.