Bitcoin Spot Exchange-Traded Funds (ETFs) Mark First Anniversary: Trading Volumes, Leading Players, and Expanding Adoption

Bitcoin Spot Exchange-Traded Funds (ETFs) Mark First Anniversary: Trading Volumes, Leading Players, and Expanding Adoption

In the world of cryptocurrencies, 2024 marked a significant milestone with the launch of U.S. spot Bitcoin exchange-traded funds (ETFs). One year later, the landscape of these digital asset ETFs has taken shape, and BlackRock's iShares Bitcoin Trust (IBIT) has emerged as the dominant player.

Since its launch in January 2024, IBIT has accumulated an impressive 1.13 million BTC, worth $106.6 billion, making it the largest and most liquid Bitcoin ETF on the market. This colossal growth has been fueled by a whopping $52 billion in inflows, a testament to strong investor demand.

The iShares Bitcoin Trust's performance has been nothing short of remarkable, with a 1-year return of approximately 80.57%. This figure places IBIT in the top tier of U.S. Bitcoin ETFs, alongside the VanEck Bitcoin ETF (HODL), Bitwise Bitcoin ETF Trust (BITB), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB). All these ETFs have delivered very similar returns, reflecting the underlying Bitcoin price movements.

Steven McClurg, CEO of Canary Capital, highlights that the 12-month mark is crucial for any ETF, as it is when financial advisors begin to consider offering the product to their clients. By this measure, the success of IBIT is undeniable.

Moreover, IBIT's popularity extends to the options market, as noted by Greg Magadini, Director of Derivatives at Amberdata. The investment landscape has also seen a shift, with CF Benchmarks experts predicting that in 2025, investment advisors will boost their ETF positions in Bitcoin and Ethereum by over 50%.

Initially, Grayscale's GBTC held the segment lead, but by the end of May 2024, IBIT from BlackRock surpassed GBTC, pushing it down to third place with assets of $19.3 billion. Eric Turner, CEO of Bitwise, attributes this surge in interest to fiscal policies in 2024.

Bobby Zagotta, Head of the U.S. division at crypto exchange Bitstamp, notes that the approval of the first Bitcoin ETF granted Bitcoin a measure of "legitimacy" at a regulatory level and provided a familiar format for investors to access digital gold.

The combined trading volume of these ETFs reached an astounding $660 billion, and in December 2024, the total assets under management (AUM) across all American Bitcoin ETFs surpassed similar products based on gold. Today, IBIT holds the top spot with $52.7 billion in AUM, while Fidelity's FBTC ranks second with $19.5 billion.

Despite its rapid growth, McClurg cautions that it can take six months to two years for significant investments to materialize. Regardless, the first year for Bitcoin ETFs has been nothing short of massive, with four of the top Bitcoin ETFs (IBIT, FBTC, ARKB, and BITB) being in the top 20 US ETF launches of all time, even when adjusted for inflation.

In summary, while many newly launched Bitcoin ETFs showed close performance aligned with Bitcoin’s rise (about 80% gain), BlackRock’s iShares Bitcoin Trust (IBIT) was the dominant ETF by assets and inflows, with VanEck’s HODL slightly beating others on 1-year percentage return by a small margin. This data is current as of mid-2025, one year following the U.S. SEC approval and launch of spot Bitcoin ETFs in early 2024.

Investors have shown significant interest in cryptocurrency-based exchange-traded funds (ETFs), as the iShares Bitcoin Trust (IBIT) has accumulated a substantial $106.6 billion worth of Bitcoin, making it the largest and most liquid Bitcoin ETF on the market.

In the rapidly evolving world of cryptocurrencies, both Bitcoin and Ethereum have become increasingly popular among investors, with investment advisors predicted to boost their ETF positions in these digital assets by over 50% in 2025.

Read also: