Bitcoin spot ETF: first year – what have we learned?
In January 2024, the American SEC approved the spot ETF funds on Bitcoin – a moment that is considered a turning point in the history of crypto. A year later, it’s time to balance and understand what had the most impact on the market.
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BlackRock’s IBIT and Fidelity’s FBTC have become the two fastest growing ETFs in history. In one year, they accumulated assets of tens of billions of dollars. The speed of accumulation exceeded any early prediction.
Who invested?
Contrary to the expectations that institutions will control the flow, the data analysis shows that a large part of the investors are private individuals. However, hedge funds, pension funds and investment advisors have also begun to integrate bitcoin into their client portfolios.
Impact on Bitcoin Price
It is difficult to disentangle the ETF from other factors, but it is clear that it has contributed to sustained demand. Unlike previous bull markets where demand was largely speculative, the ETF created systematic and consistent “buying”. The Bitcoin “absorption” effect led to a reduction in effective supply in the market.
What next?
With the approval of a spot ETF on Ethereum in 2024 and discussions of funds for additional currencies, we may be witnessing a structural change in the crypto market. The institutional money is here. Read more about market trends in 2025.
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