Spot Bitcoin ETFs Celebrate One Year Anniversary After Record Year

One year ago, the Securities and Exchange Commission (SEC) approved spot Bitcoin (BTC) exchange-traded funds (ETFs), marking a transformative moment for the cryptocurrency industry.

​​By the end of 2024, Bitcoin ETFs reached a total of $105.4 billion in net assets, a 262% increase from the $29.38 billion recorded in their debut month. The single largest inflows occurred on Nov. 7, 2024, with investments totaling $1.38 billion.

Leading the inflows were BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC funds, which currently hold $52 billion, $19.32 billion, and $19.19 billion in net assets, respectively, according to SoSoValue.

Experts say these record inflows were propelled by growing institutional adoption, as large investment firms began to embrace the accessibility and legitimacy that ETFs offer.

The ETF Effect

“The introduction of spot Bitcoin ETFs in the US last January marked a significant milestone, offering investors exposure to Bitcoin without needing to own the asset outright,” said Dom Harz, co-founder of BOB (Build on Bitcoin), adding that this development broadened access, boosted market liquidity, and enhanced Bitcoin’s legitimacy among new audiences.

This surge in interest coincided with increased optimism over regulatory clarity in major markets, particularly in the United States, fueling optimism about Bitcoin’s long-term viability as an asset class, experts said. The momentum not only propelled spot Bitcoin ETFs to new heights but also drove Bitcoin’s price to break the $100,000 mark for the first time.

So far in 2025, inflows into Bitcoin ETFs have totaled more than $1.9 billion, showing resilience despite market uncertainty stemming from broader macroeconomic concerns, such as unemployment rates and the Federal Reserve’s current hawkish stance.

Untapped Potential of Bitcoin DeFi

“More attention and capital increases participation, which has had a ripple effect on Bitcoin-focused DeFi, driving levels of growth in protocols that leverage Bitcoin for lending, staking, and as collateral,” said Harz.

He also highlighted the disparity in adoption, noting that while DeFi’s total value locked (TVL) accounts for 30% of Ethereum’s (ETH) market cap, it represents less than 0.2% of Bitcoin’s market cap, despite Bitcoin rising over 110% in the past year. This, he said, underscores the immense untapped potential of Bitcoin DeFi.