The Year in Crypto: Bitcoin and Ethereum ETFs Attract New Investors
This year has been a game-changer for the crypto industry with the introduction of spot ETFs for Bitcoin and Ethereum in January and July, respectively. These ETFs have made it easier for investors to get into crypto without the hassle of managing private keys. Bitcoin ETFs, in particular, have gained massive popularity, bringing legitimacy to the asset on Wall Street. The recent surge in the price of Bitcoin, reaching over $108,000, has only added to the excitement.
Now, there are eleven spot Bitcoin ETFs collectively holding $113 billion in assets under management, according to CoinGlass. This growth has exceeded expectations, with ETF analyst Eric Balchunas even mentioning that the total Bitcoin held by these ETFs could surpass what was mined by Satoshi Nakamoto by Christmas.
One of the standout performers this year has been BlackRock’s iShares Bitcoin Trust ETF (IBIT), which has over $53.5 billion in assets under management, making it the largest in the industry. BlackRock’s CEO, Larry Fink, who was once a Bitcoin skeptic, has now become a major believer, emphasizing Bitcoin as a long-term store of value against currency devaluation.
The success of these spot Bitcoin ETFs has surprised many in the industry, with experts like Nathan Geraci noting that the growth to over $100 billion in assets was unforeseen at the beginning of the year. This surge in popularity provides new opportunities for investors and showcases the increasing interest in cryptocurrencies among traditional investors.
