2024 Crypto Spot ETF Panorama Review: 1 Year, $40 Billion

Author: Fairy, ChainCatcher

Editor: Nian Qing, ChainCatcher

2024 is a historic year for the cryptocurrency market. In the past ten years, the U.S. Securities and Exchange Commission has rejected applications for Bitcoin spot ETFs at least 30 times, but on January 11, 2024, a historical turning point was reached. The U.S. Bitcoin Spot ETF was officially approved for listing, with a trading volume of US$4.6 billion and a net inflow of US$628 million on the first day. Immediately afterwards, many countries such as Hong Kong and Australia also successively launched Bitcoin spot ETFs, further promoting the legalization process of global crypto assets. As of press time, 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 is the year when cryptoassets truly turn mainstream. According to the latest 13-F filing, all types of institutions are currently holders of crypto ETFs, including endowments, pension funds, hedge funds, investment advisors and family offices. In this wave of mainstreaming of crypto assets, ETFs of other digital assets such as Solana and XRP have gradually come into public view, further paving the way for development in 2025.

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

********A review of key journeys : ****the birth year

of**** crypto spot ETFs

Bitcoin Spot ETF 2024 Time Lookback

Back in the early morning of January 11, 2024, the entire cryptocurrency industry was waiting with bated breath, and global investors were nervously paying attention to the final ruling of the U.S. Bitcoin Spot ETF. Finally, the words "formally approved" appeared before everyone's eyes, and the Bitcoin spot ETF was successfully launched, fulfilling everyone's expectations for many years.

On the first day, the trading volume of Bitcoin spot ETF exceeded US$4.6 billion, and the Bitcoin spot ETF had a net inflow of US$628 million. In the first three days of listing, the transaction volume has reached nearly 10 billion US dollars.

On January 19, just one week after the transaction, the U.S. Bitcoin ETF’s assets under management exceeded that of the silver ETF, becoming the second largest ETF commodity category in the United States.

As the United States passed the Bitcoin spot ETF, Hong Kong was not far 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 On the same day, six 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 first-day trading volume of the six ETFs was approximately HK$87.58 million (approximately US$12.7 million).

The launch of the Hong Kong Cryptocurrency Spot ETF has had a profound impact on the financial landscape of the Chinese area and is also an important step in the further legalization of global cryptocurrencies. Hong Kong crypto ETF adopts a physical redemption mechanism, which provides a channel for the conversion of crypto assets into traditional financial assets.

Subsequently, various countries gradually began to approve and trade Bitcoin spot ETFs. On June 4, Australia's 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, and on October 19, the SEC approved the trading of a variety of spot Bitcoin ETF options. The scope of Bitcoin-related derivatives has been further expanded, bringing options products with both compliance and trading depth to the market. Bitcoin ETF options allow investors to conduct maturity-based portfolio allocation, which is particularly suitable for long-term investments, injecting more compliance and trading depth into the market.

Ethereum Spot ETF 2024 Time Lookback

In 2024, Ethereum spot ETFs will usher in a series of important developments around the world. From Hong Kong to the United States to Australia, many regions around the world are actively promoting the approval and listing of Ethereum spot ETFs. Ethereum, as the "Dragon II" of the crypto market, officially comes to traditional investors.

On April 24, Hong Kong Bitcoin Spot ETF and Ethereum Spot ETF were officially approved. This is the first time that Ethereum Spot ETF has been listed 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 US$2.99 ​​million.

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

On July 23 , the encryption market once again ushered in a historic moment , when the U.S. SEC officially approved the Ethereum spot ETF . The trading volume of the Ethereum spot ETF on the first day exceeded US$1.019 billion, with a net inflow of US$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 delay is intended to allow for more analysis and public comment, particularly on whether the proposed rule changes comply with the requirements of the Exchange Act, the filing said.

Other Crypto-Related ETFs Looking Back to 2024

Following the approval of the Bitcoin and Ethereum Spot ETFs, the Solana Spot ETF has 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 Solana ETF officially entering the public eye. Subsequently, 21Shares and VanEck also submitted applications for the Solana ETF to the SEC.

On August 8, the Brazilian Securities and Exchange Commission approved the world’s first Solana spot ETF, and on August 21, Brazil approved the second Solana ETF. This is a first-of-its-kind step for Brazil and brings more optimism to crypto proponents.

Applications for the Solana spot ETF in the United States continue. On November 22, Cboe submitted four Solana spot ETF listing applications to the US SEC. On December 4, Grayscale sought to convert its Solana trust funds into spot ETFs and list them on the New York Stock Exchange. However, sources later revealed that the SEC had notified at least two applicants for the Solana spot ETF that their 19b-4 filings would be rejected. This news shows that the United States is still cautious about the Solana spot ETF.

In addition to Solana, XRP is also the focus of institutional attention. Currently, Bitwise, 21Shares 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 types to income types. This trend marks the crypto market’s gradual move toward the mainstream and demonstrates 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 ?

******** The total assets under management of ETFs listed in the United States exceed US$10 trillion, of which US$40 billion is invested in the cryptocurrency field. Crypto ETFs currently account for 0.4% of the overall ETF market. However, according to data from K33 Research , net inflows into Bitcoin spot ETFs in 2024 will account for 3.5% of all net inflows into U.S. ETFs in 2024, which is significantly higher than traditional asset classes.

Since its launch, the Bitcoin ETF has flowed 4.5 times faster than the inflation-adjusted gold ETF. While cumulative flows still lag gold, the U.S. Bitcoin ETF’s assets under management have surpassed gold.

Not only that, the BTC holdings of the U.S. Bitcoin Spot ETF have exceeded 1.13 million, surpassing Satoshi Nakamoto’s Bitcoin holdings and becoming the largest “Bitcoin holder” in the world. These achievements undoubtedly illustrate that the Bitcoin Spot ETF is the “most successful” ETF of all time.

As of December 24, the cumulative net inflow of U.S. Bitcoin spot ETFs reached US$35.49 billion, and the total net asset value reached US$110 billion. Among them, BlackRock IBIT’s net asset value accounted for nearly 50%, reaching US$53.7 billion. It is worth noting that IBIT's asset size is already equivalent to the sum of 50 European-focused ETFs (region + single country), and these European ETFs have been in existence for 20 years.

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

The U.S. Ethereum Spot ETF had previously mediocre performance, 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, 21Shares announced the addition of staking functionality to its Ethereum Core ETP product and changed its name to “Ethereum Core Staking ETP” (ETHC). Coupled with the news of Trump's victory, the market's expectations for the introduction of staking functions in Ethereum spot ETFs have become increasingly strong.

As of December 24, the cumulative net inflow of U.S. Ethereum spot ETFs reached US$2.51 billion, and the total net asset value reached US$12.35 billion. On December 5, net inflows reached $428 million, setting a record.

Among the U.S. Ethereum spot ETFs, Grayscale’s ETHE has the highest net asset value, reaching $4.91 billion, followed by BlackRock’s ETF, with a net asset value of $3.65 billion. The two together account for 69.3% of the total assets of U.S. Ethereum spot ETFs.

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

Which crypto ETFs will be approved in 2025?

********Multiple Solana ETF applications will usher in the first review period 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 19b-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 new SEC Chairman Paul Atkins takes office. Paul Atkins serves as co-chairman of the Token Alliance, a digital chamber of commerce, and is committed to researching and promoting the development of the digital asset industry. His appointment may bring new possibilities for the approval of Solana ETF .

10 Cryptocurrency Index ETFs Bitwise Files with SEC ********The first review period is January 18, 2025. This ETF includes 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, which will have its first review period on January 30, 2025 , is a proposed spot cryptocurrency index fund composed of BTC and ETH that aims to “make investments available in an easily accessible format.” Investors balance investing in two of the world’s largest cryptoassets.”

Additionally, the following crypto ETFs are also awaiting approval:

XRP ETF

• Bitwise XRP ETF
• Canary XRP ETF
• 21Shares 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 the SEC’s final decision may be made around April 9, 2025. But the SEC is not the only decision-making body. It also needs approval from the OCC and CFTC.

Looking forward to 2025

In 2025, more crypto assets may enter the ETF field. Although regulatory challenges remain, 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 a speculative tool, but will become an important part of global investment portfolios, promoting the deep integration of traditional finance and digital assets.

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

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

Framework Vance Spencer predicts that the listing of cryptocurrency ETFs other than Bitcoin and Ethereum will be delayed until 2026.

Research agency Messari predicts : ETF inflows will continue to increase in 2025, especially as Grayscale’s GBTC turns to positive net flows, and the launch of the spot Solana ETF within the next year or two seems inevitable.

Coinbase said : Going forward, industry attention is focused on the possibility that issuers will expand the asset range of ETFs to add more tokens like XRP, SOL, LTC and HBAR, but we believe these potential approvals may only be for a limited asset group. Useful.

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

ETF publisher Bitwise predicts that Bitcoin ETF inflows in 2025 will exceed 2024. Trillions of dollars in funds managed by companies will start flowing into Bitcoin ETFs.