2024 Crypto Spot ETF Inventory: The scale will exceed $40 billion in one year

2024 is a landmark year for the cryptocurrency market. After a decade of waiting, the U.S. has finally approved the listing of Bitcoin spot ETFs for trading. On January 11, the U.S. Bitcoin spot ETF was officially launched, with a first-day trading volume of $4.6 billion and a net inflow of $628 million. Subsequently, Hong Kong, Australia and other countries and regions have also launched Bitcoin spot ETFs, further promoting the compliance process of global crypto assets. So far, the asset size of crypto ETFs in the United States has exceeded US$122.39 billion, and in Hong Kong it has reached US$467 million.

2024 can be said to be the year when crypto assets really go mainstream. The latest data shows that various types of institutional investors such as endowments, pension funds, hedge funds, investment advisors, and family offices have become holders of crypto ETFs. In this wave of mainstreaming of crypto assets, ETFs of other digital assets such as Solana and XRP have gradually entered the public eye, laying the groundwork for the development of 2025.

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

Key Journey Review: The Year of Crypto Spot ETFs

Bitcoin Spot ETF 2024 Timeline

In the early morning of January 11, 2024, the US Bitcoin spot ETF was officially approved, finally fulfilling the expectations of the industry for many years. The first-day trading volume exceeded $4.6 billion, with a net inflow of $628 million. Just a week after its listing, the U.S. Bitcoin ETF surpassed silver ETFs in assets under management to become the second-largest ETF commodity category in the U.S.

On April 15, Hong Kong approved in principle Bitcoin and Ethereum spot ETFs. On April 30, six virtual asset spot ETFs were officially listed and traded on the Hong Kong Stock Exchange. The Hong Kong Crypto ETF raised about HK$2 billion on its first day, with a net asset value of US$293 million. The total trading volume of the 6 ETFs on the first day was about HK$87.58 million.

On June 4, Australia's first Bitcoin spot ETF began trading, and the Securities Commission of Thailand approved the country's first Bitcoin spot ETF.

On September 23, the SEC approved the NASDAQ-listed BlackRock Bitcoin ETF options. On October 19, the SEC approved a variety of spot Bitcoin ETF options trading. This further expands the range of Bitcoin-related derivatives, bringing more compliant and deeply traded options products to the market.

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion

Ethereum Spot ETF 2024 Timeline

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

On May 24, the SEC approved the 19b-4 filing for the first spot Ethereum ETF, paving the way for it to be legally traded in the U.S. market.

On July 23, the SEC officially approved the Ethereum spot ETF. The 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 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 Crypto-Related ETFs 2024 Timeline

On June 20, the first Solana spot ETF application was filed in North America, followed by 21Shares and VanEck filing with the SEC.

On August 8, the Brazilian Securities and Exchange Commission approved the world's first Solana spot ETF, and on August 21, the second Solana ETF was approved.

On November 22, Cboe submitted four Solana spot ETF listing applications to the US SEC. On Dec. 4, Grayscale sought to convert its Solana Trust into a cash ETF and list on the NYSE. However, there is news that the SEC has notified at least two applicants for the Solana spot ETF that their 19b-4 filings will be rejected.

Bitwise, 21Shares, and WisdomTree have submitted XRP Spot ETF applications in the United States.

From November to December, various types of crypto-related ETFs were launched or entered the application stage, from single crypto assets to multi-asset portfolios, from index to income, indicating that the crypto market is gradually moving towards the mainstream.

2024 ETF data performance

U.S.-listed ETFs have more than $10 trillion in total assets under management, of which $40 billion is invested in the cryptocurrency space, accounting for 0.4% of the overall ETF market. According to K33 Research, the net inflow of Bitcoin spot ETFs in 2024 accounted for 3.5% of all net inflows of US ETFs that year, significantly higher than traditional asset classes.

Bitcoin ETFs move 4.5 times faster than inflation-adjusted gold ETFs. While cumulative flows still lag behind gold, US Bitcoin ETFs have surpassed gold in AUM. The BTC holdings of the US Bitcoin spot ETF have exceeded 1.13 million, surpassing Satoshi Nakamoto's holdings and becoming the world's largest "Bitcoin holder".

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion

As of December 24, the cumulative total net inflow of US bitcoin spot ETFs reached $35.49 billion, and the total net asset value reached $110 billion. Among them, BlackRock's IBIT net asset value accounted for nearly 50%, reaching $53.7 billion. IBIT's assets are as large as 50 Europe-focused ETFs combined.

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion

The U.S. Ethereum spot ETF has previously been a flat performer, but inflows and liquidity have increased significantly since November. On November 13, Bitwise announced the acquisition of Attestant, an Ethereum staking service provider. On November 20, 21Shares added a staking function to its Ethereum core ETP product. The market's expectation for the introduction of staking functions in Ethereum spot ETFs is becoming stronger.

As of December 24, the cumulative total net inflow of Ethereum spot ETFs in the United States reached $2.51 billion, and the total net asset value reached $12.35 billion. Net inflows reached a record $428 million on December 5. Among Ethereum spot ETFs in the United States, Grayscale's ETHE has the highest net asset value of $4.91 billion, followed by BlackRock's ETF with a net asset value of $3.65 billion. Together, they account for 69.3% of the total assets of the Ethereum spot ETF in the United States.

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion

2025 Crypto ETF Outlook

In 2025, more crypto assets are likely to enter the ETF space. While regulatory challenges remain, the continued participation of institutional investors and the gradual maturation of the market will provide more impetus for the future development of the cryptocurrency industry. It is expected that crypto assets will become an important part of global investment portfolios, promoting the deep integration of traditional finance and digital assets.

The predictions of industry institutions and experts for the development of crypto ETFs in 2025 include:

• The staking feature may be integrated into the Ethereum ETF for the first time.
• ETFs for other cryptocurrencies such as Solana are expected to be launched
• Weighted crypto index ETFs may appear
• ETF inflows are expected to continue to increase
• New SEC leadership is likely to approve more spot crypto ETPs
• Bitcoin ETFs are likely to see more inflows in 2025 than in 2024
• The tens of trillions of dollars in funds managed by the company may begin to flow into Bitcoin ETFs.

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion

Overall, the crypto ETF market is expected to further expand and deepen in 2025, providing investors with more diversified crypto asset investment options.

! 2024 Crypto Spot ETF Report Card: 1 Year, $40 Billion