The launch of Spot Bitcoin Exchange Traded Funds (ETFs) in the United States was a historic milestone for the cryptocurrency market. These Spot Bitcoin ETFs, which was the first to be published in the US on January 11, 2024, have been a huge success in just one year, making it the largest ETF launch in history.

In the current situation, American Spot Bitcoin ETFs have now become one of the main factors in the growth of Bitcoin prices and have played a huge role in Bitcoin Breakout Above $100,000. Moreover, these US Spot Bitcoin ETFs are now available jointly the largest holders of Bitcoin.

Performance Metrics for US Spot Bitcoin ETFs

For years, the U.S. Securities and Exchange Commission (SEC) has resisted approval of Spot Bitcoin ETFs, making their final approval in January 2024 a significant turning point for the cryptocurrency industry. Specifically, the SEC approved the first 11 Spot Bitcoin ETF applications on January 10, 2024.

All Spot Bitcoin ETFs showed positive performance in their inaugural year except Grayscale’s GBTC. The launch of spot Bitcoin ETFs has been met with record enthusiasm, and so have these funds recorded the highest trading volumes any ETF launch in history within the first few days of their operation.

In addition to opening up the Bitcoin and cryptocurrency industries to classic investors who would not otherwise invest in cryptocurrencies, many huge Bitcoin holders also saw ETFs as the best way to invest to take advantage of their regulatory transparency.

In particular, BlackRock’s iShares Bitcoin Trust (IBIT). and Fidelity’s Fidelity Wise Origin Bitcoin Fund led the charge with significant inflows all year round. These two funds quickly established themselves as dominant players, with each recording over $3 billion in inflows in their first 20 days of operation.

At the time of writing, U.S. Spot Bitcoin ETFs currently control a total of approximately $107.64 billion in Bitcoin assets, representing approximately 5.75% of Bitcoin’s total market capitalization, according to data from SoSoValue. Since launching a year ago, these ETFs have seen cumulative net inflows of $36.22 billion.

In terms of cumulative net inflows, IBIT recorded the highest inflow amount at $37.67 billion, while FBTC is second with $12.16 billion. These two are enough to offset net outflows of $21.57 from the existing Grayscale Bitcoin Trust, which was converted to a Spot Bitcoin ETF.

Other ETF providers also saw cumulative net inflows last year, with the ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF also totaling $2.49 billion and $2.43 billion, respectively, at the time of writing. However, the remaining seven ETF providers have not yet crossed the $1 billion threshold in cumulative net inflows, pointing to a more unequal distribution of investor interest across the industry.

Where Do Spot Bitcoin ETFs Go?

The only chance for Spot Bitcoin ETFs is growth, especially in the longer term in 2025 and beyond. Cryptocurrency investors are hopeful about significant capital inflows into these ETFs in anticipation of a crypto-positive policy should be introduced by the future Trump administration.

At the time of writing, Bitcoin is trading at $94,057.

Featured image from Pexels, chart from TradingView