Encryption Spot ETF Welcomes a Milestone Year: 2024 Review and 2025 Outlook

2024 is a historically significant year for the cryptocurrency market. After a decade of waiting, the United States finally approved the listing of the Bitcoin Spot ETF on January 11, achieving a trading volume of $4.6 billion and a net inflow of $628 million on its first day. Subsequently, countries such as Hong Kong and Australia also launched Bitcoin Spot ETFs, advancing the mainstreaming process of global encryption assets. By the end of the year, the asset size of U.S. encryption ETFs had surpassed $122.39 billion, while Hong Kong reached $46.7 million.

2024 witnessed the transformation of encryption assets into mainstream investment products. Various institutional investors, including donation funds, pension funds, hedge funds, etc., have become holders of encryption ETFs. In addition to Bitcoin, ETFs of digital assets such as Ethereum, Solana, and XRP are gradually entering the public eye, laying the foundation for development in 2025.

Review of Key Events for Cryptocurrency Spot ETF in 2024

Bitcoin Spot ETF

• January 11: The United States officially approved the listing of the Bitcoin Spot ETF.
• January 19: Bitcoin ETF becomes the second largest ETF product category in the United States.
• April 30: 6 virtual asset Spot ETFs officially listed for trading in Hong Kong
• June 4: Australia's first Bitcoin Spot ETF starts trading
• September 23: The United States approves Bitcoin ETF options trading.

Ethereum Spot ETF

• April 24: Hong Kong approves Ethereum Spot ETF
• May 24: The US SEC approved the first Spot Ethereum ETF's 19b-4 filing.
• July 23: The United States officially approved the listing of the Ethereum Spot ETF.
• November 8: The US delays approval for Ethereum ETF options.

Other encryption ETF

• June 20: North America's first Solana Spot ETF application submitted
• August 8: Brazil approves the world's first Solana Spot ETF
• November 22: US exchanges submitted listing applications for 4 Solana Spot ETFs.
• December 4: Grayscale applied to convert the Solana Trust Fund into a Spot ETF.

2024 ETF Market Performance

As of December 24:

• The cumulative net inflow of the U.S. Bitcoin Spot ETF is $35.49 billion, with a total net asset value of $110 billion.
• The total net inflow of the US Ethereum Spot ETF has reached $2.51 billion, with a total net asset value of $12.35 billion.
• The Bitcoin ETF holds over 1.13 million coins, becoming the world's largest "Bitcoin holder".
• Encryption ETF accounts for 0.4% of the US ETF market, but net inflow proportion reaches 3.5%

2025 Encryption ETF Outlook

• Solana ETF may be approved after the new SEC chairman takes office.
• Multiple encryption currency index ETFs are expected to be launched
• Ethereum ETF may introduce staking functionality
• XRP, Litecoin, HBAR and other encryption asset ETFs are awaiting approval.
• The final decision on the Ethereum Spot ETF options is expected around April 9.

Industry predictions suggest that by 2025, encryption ETFs will continue to grow, with more encryption assets potentially entering the ETF space. Despite ongoing regulatory challenges, sustained participation from institutional investors will drive encryption assets to become a key component of global investment portfolios, facilitating a deep integration of traditional finance and digital assets.