Bitcoin ETFs Exceed Expectations in First Year, With Record Flows Likely to Continue in 2025
The launch of spot Bitcoin exchange-traded funds (ETFs) has been nothing short of a game-changer for the crypto market, surpassing all expectations in their first year. According to James Seyffart, an analyst at Bloomberg Intelligence, the success has been nothing short of “MASSIVE,” with the industry’s reaction reflecting just how unprecedented the growth has been.
BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, with a historic launch that brought in over $52.3 billion in assets in its first year, a combination of significant inflows and Bitcoin’s sharp price rise, Seyffart reported. Three other spot Bitcoin ETFs—Fidelity’s Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB)—also ranked among the top 20 ETF launches in U.S. history.
For Fidelity Investments, the last year in crypto has been monumental. Matt Horne, head of digital asset strategists at Fidelity, highlighted that FBTC has become the company’s largest exchange-traded product, now holding nearly $19 billion in assets. “Demand for Bitcoin ETPs far exceeded our expectations,” Horne said, pointing to strong interest from retail investors, financial advisors, institutions, and beyond. With these products now established and performing well, he anticipates continued adoption in both advisor and institutional client segments.
Looking Ahead to 2025
While hedge funds and pension funds made modest allocations to the new spot ETFs, the bulk of inflows came from nonprofessional investors. This trend, however, may be set to shift as more institutional players warm up to the market.
Mark Connors, founder and chief investment strategist at Risk Dimensions, noted that record inflows have been achieved despite resistance from certain financial institutions and advisors who discourage personal Bitcoin ownership. “As more support comes from RIA/advisors and wirehouses, along with the tailwind of price increases, 2025’s flows will likely surpass 2024,” he predicted.
Nate Geraci, president of the ETF Store, believes that 2025 could mark the “Year of Crypto ETFs”. With leadership changes at the U.S. Securities and Exchange Commission (SEC), he expects approval for over 50 new crypto ETFs, including spot funds for Solana and XRP, as well as products focused on options and equities.
“Gary Gensler always referred to crypto as the ‘Wild West,’” Geraci wrote in The ETF Educator. “Under the Trump administration, I think that is exactly what we’ll get from an ETF perspective.”
With institutional adoption increasing and new products on the horizon, 2025 is shaping up to be another groundbreaking year for crypto ETFs.
