2024 Crypto Spot ETF Overview: 1 Year, 40 Billion USD

Author: Fairy, ChainCatcher

Editor: Nianqing, ChainCatcher

2024 is a historic year for the cryptocurrency market. Over the past decade, the U.S. Securities and Exchange Commission has rejected Bitcoin spot ETF applications at least 30 times, but on January 11, 2024, a historic turning point arrived. The U.S. Bitcoin spot ETF was officially approved for listing, achieving a trading volume of $4.6 billion and a net inflow of $628 million on its first day. Subsequently, several countries, including Hong Kong and Australia, also launched Bitcoin spot ETFs, further promoting the legalization process of global crypto assets. As of the time of writing, the asset size of U.S. crypto ETFs has surpassed $122.39 billion, with Hong Kong reaching $467 million.

2024 marks the year when crypto assets truly shift towards mainstream assets. According to the latest 13-F filings, 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 crypto asset mainstreaming, other digital assets like Solana and XRP are also gradually coming into the public eye, further laying the groundwork for development in 2025.

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

Key Milestones Review : The Birth Year of Crypto Spot ETFs

Bitcoin Spot ETF 2024 Timeline

Back to the early morning of January 11, 2024, the entire cryptocurrency industry held its breath, with global investors anxiously awaiting the final ruling on the U.S. Bitcoin spot ETF. Finally, the words "officially approved" appeared before everyone, and the Bitcoin spot ETF successfully came into existence, fulfilling the long-held expectations of many.

On its first day, the Bitcoin spot ETF traded over $4.6 billion, with a net inflow of $628 million. In the first three days of trading, the volume approached $10 billion.

On January 19, just a week after trading began, the managed asset size of the U.S. Bitcoin ETF surpassed that of silver ETFs, making it the second-largest ETF commodity category in the U.S.

With the U.S. approving the Bitcoin spot ETF, Hong Kong was not to be left behind. On April 15, Hong Kong provisionally approved BTC and ETH spot ETFs; on April 24, the Hong Kong Bitcoin spot ETF and Ethereum spot ETF were officially approved; and on April 30, six virtual asset spot ETFs were listed on the Hong Kong Stock Exchange and opened for trading.

The first-day fundraising scale of the Hong Kong spot cryptocurrency ETF was approximately HKD 2 billion, with a calculated net asset value of $293 million. The total trading volume of the six ETFs on their first day was about HKD 87.58 million (approximately $12.7 million).

The launch of the Hong Kong cryptocurrency spot ETF has had a profound impact on the financial landscape of the Chinese community and is also an important step towards further legitimizing cryptocurrencies globally. The Hong Kong crypto ETF adopts a physical creation and redemption mechanism, providing a pathway for crypto assets to be converted into traditional financial assets.

Subsequently, other countries gradually began to approve and trade Bitcoin spot ETFs. On June 4, Australia's first Bitcoin spot ETF officially started trading, and the Thai Securities Commission also approved the first local Bitcoin spot ETF.

By September 23, the U.S. SEC approved the listing of BlackRock's Bitcoin ETF options on Nasdaq, and on October 19, the SEC approved various spot Bitcoin ETF options trading. The scope of Bitcoin-related derivatives was further expanded, bringing compliant and deep trading options products to the market. Bitcoin ETF options allow investors to configure portfolios based on timeframes, making them particularly suitable for long-term investments and injecting more compliance and trading depth into the market.

Ethereum Spot ETF 2024 Timeline

In 2024, the Ethereum spot ETF saw a series of significant developments globally. From Hong Kong to the U.S. and Australia, various regions were actively promoting the approval and listing of Ethereum spot ETFs. Ethereum, as the "second in command" of the crypto market, officially came before traditional investors.

On April 24, the Hong Kong Bitcoin spot ETF and Ethereum spot ETF were officially approved, marking the first time Ethereum spot ETF was listed on a major exchange. The first-day net inflow of the Hong Kong Ethereum spot ETF was 14,200 ETH, with a trading volume of $2.99 million.

On May 24, the U.S. SEC approved the 19b-4 filing for the first spot Ethereum ETF. This filing was a key step for the legal trading of Ethereum spot ETFs in the U.S., opening the door for Ethereum spot products to officially enter the U.S. market.

On July 23, the crypto market welcomed another historic moment as the U.S. SEC officially approved the Ethereum spot ETF. The first-day trading volume of the Ethereum spot ETF exceeded $1.019 billion, with a net inflow of $106.6 million.

On November 8, the U.S. SEC again delayed its decision on the listing of spot Ethereum ETF options on the New York Stock Exchange. The document stated that the delay was aimed at conducting more analysis and public opinion, particularly regarding whether the proposed rule changes comply with the Securities Exchange Act.

Other Crypto-Related ETFs 2024 Timeline

Following the approval of Bitcoin and Ethereum spot ETFs, the Solana spot ETF 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 official entry of Solana ETFs into the public eye. Subsequently, 21Shares and VanEck also submitted applications for Solana ETFs to the SEC.

On August 8, the Brazilian Securities Commission approved the world's first Solana spot ETF, and on August 21, Brazil approved the second Solana ETF. This was a pioneering step for Brazil, bringing more optimism to crypto supporters.

The application for the Solana spot ETF in the U.S. is ongoing. On November 22, Cboe submitted applications for four Solana spot ETFs to the U.S. SEC, and on December 4, Grayscale sought to convert its Solana trust into a spot ETF and list it on the NYSE. However, shortly after, sources revealed that the SEC had notified at least two Solana spot ETF applicants that their submitted 19b-4 filings would be rejected. This news indicates that the U.S. remains cautious regarding Solana spot ETFs.

In addition to Solana, XRP is also a focus of institutional interest. Currently, Bitwise, 21Shares, and WisdomTree have submitted XRP spot ETF applications in the U.S.

Moreover, various types of crypto-related ETFs have been launched or entered the application stage in November and December, ranging from single crypto assets to multi-asset portfolios, from index-based to yield-based. This trend marks the gradual move of the crypto market towards 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 U.S. exceed $10 trillion, with $40 billion invested in the cryptocurrency sector. Crypto ETFs currently account for 0.4% of the overall ETF market. However, according to K33 Research data, the net inflow of Bitcoin spot ETFs in 2024 accounted for 3.5% of all net inflows into U.S. ETFs in 2024, a significantly higher proportion than traditional asset classes.

Since its launch, the liquidity speed of the Bitcoin ETF has been 4.5 times that of inflation-adjusted gold ETFs. Although the cumulative flow still lags behind gold, the asset management scale of U.S. Bitcoin ETFs has surpassed that of gold.

Moreover, the BTC holdings of U.S. Bitcoin spot ETFs have exceeded 1.13 million, surpassing Satoshi Nakamoto's Bitcoin holdings, making it the world's largest "Bitcoin holder." These achievements undoubtedly indicate that the Bitcoin spot ETF is the "most successful" ETF of all time.

As of December 24, the cumulative total net inflow of U.S. Bitcoin spot ETFs reached $35.49 billion, with a total net asset value of $110 billion. Notably, BlackRock's IBIT accounted for nearly 50% of the asset value, reaching $53.7 billion. It is worth mentioning that the asset size of IBIT is equivalent to the total of 50 ETFs focused on Europe (regional + single country), which have existed for 20 years.

Net inflow of Bitcoin spot ETF and Bitcoin price chart, source: sosovalue

The U.S. Ethereum spot ETF previously performed modestly, but since November, its inflow and liquidity have significantly increased.

On November 13, ETF issuer Bitwise announced the acquisition of Ethereum staking service provider Attestant. On November 20, 21Shares announced the addition of staking features to its Ethereum core ETP product, renaming it "Ethereum Core Staking ETP" (ETHC). Coupled with news of Trump's victory, market expectations for the introduction of staking features in Ethereum spot ETFs grew stronger.

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

Among U.S. Ethereum spot ETFs, the highest net asset value is Grayscale's ETHE, reaching $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 U.S. Ethereum spot ETFs.

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

Which Crypto ETFs Will Be Approved in 2025?

Multiple Solana ETF applications will face their first review deadline 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 submitted 19b-4 filings will be rejected. Additionally, insiders have revealed that the SEC may not approve any new cryptocurrency ETF applications during the current administration.

Bloomberg senior ETF analyst Eric Balchunas expects issuers to resubmit applications after the new SEC Chairman Paul Atkins takes office. Paul Atkins serves as co-chair of the Digital Chamber's Token Alliance, dedicated to researching and promoting the development of the digital asset industry. His appointment may bring new possibilities for the approval of Solana ETFs.

Bitwise's submission of 10 cryptocurrency index ETFs will have its first review deadline on January 18, 2025. This ETF encompasses various mainstream crypto assets currently on the market, including BTC, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Ethereum, Avalanche, and Bitcoin Cash.

Bitwise Bitcoin and Ethereum ETFs will have their first review deadline on January 30, 2025. This ETF is a proposed spot cryptocurrency index fund composed of BTC and ETH, aimed at "providing investors with a balanced investment in the two largest crypto assets in an easily accessible form."

In addition, 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

Besides ETFs, the approval of Ethereum spot ETF options will also take place in 2025. Bloomberg ETF analyst James Seyffart stated that the SEC's final decision may be made around April 9, 2025. However, the SEC is not the only decision-making body; approvals from the OCC and CFTC are also required.

Looking Ahead to 2025

In 2025, more crypto assets may enter the ETF space. Although regulatory challenges remain, 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. We can foresee that crypto assets will no longer be merely speculative tools but will become an important component of global portfolios, driving the deep integration of traditional finance and digital assets.

Here are predictions from industry institutions and KOLs regarding the development of crypto ETFs in 2025:

Forbes Prediction: Staking will be integrated into Ethereum ETFs for the first time in 2025. Other cryptocurrencies (like Solana) will soon have ETFs launched, and there may be the introduction of weighted crypto index ETFs.

Framework Co-founder Vance Spencer Prediction: The listing plans for other cryptocurrencies' ETFs, excluding Bitcoin and Ethereum, will be postponed until 2026.

Research Institution Messari Prediction: ETF inflows will continue to increase in 2025, especially as Grayscale's GBTC turns to positive net flows, making the launch of spot Solana ETFs in the next year or two seem inevitable.

Coinbase Statement: Looking ahead, the industry's focus is on issuers potentially expanding the asset range of ETFs to include more tokens like XRP, SOL, LTC, and HBAR, but we believe these potential approvals may only benefit a limited group of assets.

ETF Issuer VanEck Prediction: The new SEC leadership (or possibly the CFTC) will approve multiple new spot cryptocurrency exchange-traded products (ETPs) in the U.S., including VanEck's Solana product. The functionality of Ethereum ETPs will expand to include staking, further enhancing their utility for holders, while both Ethereum and Bitcoin ETPs will support physical creation/redemption. Whether the SEC or Congress repeals SEC rule SAB 121 will pave the way for banks and brokers to custody spot cryptocurrencies.

ETF Issuer Bitwise Prediction: The inflow of Bitcoin ETFs in 2025 will exceed that of 2024. Trillions of dollars managed by the company will begin to flow into Bitcoin ETFs.