Author: Tanay Ved Source: Coin Metrics Translation: Shan Ouba, Golden Finance
In its first year, Bitcoin ETFs attracted $115 billion in AUM, $32 billion in net inflows, and currently hold about 5.7% of the Bitcoin supply.
BlackRock's iShares Bitcoin ETF dominates with 540K BTC, while Grayscale's holdings have declined as investors turn to low-cost options.
Bitcoin ETFs have driven institutional adoption, redefined market structure and consolidated Bitcoin's position as a mainstream asset.
Spot Bitcoin exchange-traded funds (ETFs) have been popular in U.S. financial markets for more than a year. These instruments have expanded access to Bitcoin for retail and institutional investors, attracted billions of dollars of untapped capital, and elevated the asset class from niche to mainstream. The launch may be remembered as the most successful ETF debut in financial history, with assets under management (AUM) exceeding $110 billion in just one year.
This article reviews the remarkable success of spot Bitcoin ETFs on their first anniversary and reviews their liquidity, prominent issuers, and market-shaping impact.
After a decade of anticipation, rejected applications, and fake tweets that caught the crypto market off guard, the U.S. Securities and Exchange Commission (SEC) finally approved the launch of a spot Bitcoin ETF on January 10, 2024. Soon after the approval, 11 funds entered the market, vying to attract inflows. Issuers include traditional financial giants such as BlackRock, an asset manager with a market value of $11 trillion, and Fidelity, as well as crypto-native issuers such as Bitwise.
Currently, spot Bitcoin ETFs have seen net inflows of approximately $32 billion, holding a total of over 1.1 million BTC, equivalent to $115 billion in assets under management. These holdings currently represent approximately 5.7% of the circulating supply of Bitcoin. In other words, this represents approximately 1% of the total assets under management of all ETFs worldwide, highlighting the huge growth potential ahead.
Source: Coin Metrics Labs
These Bitcoin ETFs target 3 major investor groups - individual investors, wealth advisors and institutional investors. 13F filings reveal the buyers behind the ETFs, which are primarily composed of retail and professional investors, including hedge funds and major financial institutions such as Goldman Sachs and Millennium Management. This reflects the growing interest in including Bitcoin in portfolios and the appeal of regulated ETF structures, which act as a bridge between the worlds of traditional finance and cryptocurrencies.
As revealed in our 2025 Outlook report, we expect capital inflows to accelerate in 2025, and the AUM of these ETFs could double as the easing of regulatory conditions leads to broader participation from channels such as pension funds, family offices, and endowments.
From the perspective of a single issuer, not all issuers perform equally. While BlackRock’s iShares Bitcoin ETF (IBIT) has accumulated around 540,000 BTC, half of all BTC accumulated by ETFs, Grayscale’s GBTC holdings have fallen from over 600,000 to 200,000, dragging net flows down.
Source: Coin Metrics Labs
As of January 19, BlackRock's IBIT assets under management reached US$59 billion, with assets exceeding BlackRock iShares Gold ETF (IAU), further cementing Bitcoin’s status as “digital gold.” Bloomberg ETF analyst Eric Balchunas said IBIT reached the $50 billion AUM milestone in just 227 trading days, breaking the previous record of 1,323 days set by the iShares Core MSCI Emerging Markets ETF.
Source: Coin Metrics Institutional Metrics, Grayscale
On the other hand, Grayscale Bitcoin Trust (GBTC), which was once the main vehicle for gaining indirect Bitcoin exposure, has faced challenges after converting to an ETF. Investors sought out newly launched Bitcoin ETFs that offered expense ratios lower than Grayscale’s 1.5%. Additionally, a portion of GBTC’s assets were spun off into the Grayscale Bitcoin Mini Trust (BTC), a low-cost alternative to its predecessor.
By analyzing 12 months of data, we can begin to understand the interaction between spot Bitcoin ETF net flows and BTC prices. As a large and stable source of structural demand for BTC, spot ETFs have a measurable impact on price movements, albeit with some variation over time. The chart below shows that large inflows or outflows coincide with major price moves. However, this relationship is not consistent, as broader market conditions and investor sentiment play a role in addition to factors such as MicroStrategy’s market impact.
Conclusion
Spot Bitcoin ETFs have reshaped the cryptocurrency investment landscape, attracting both institutional and retail capital while driving structural demand for BTC. Over the past year, they have demonstrated their potential to legitimize and expand the use of digital assets. Ethereum ETFs, while slow to get off to a slow start, have begun to gain momentum, reflecting the growing demand for such products. As the market matures, new opportunities, such as multi-asset ETFs that collateralize ETH and SOL ETFs or other crypto assets, could further increase accessibility and solidify the role of ETFs in bridging traditional finance and digital assets. The next wave of ETF inflows could unlock even greater growth, driving momentum in cryptocurrency adoption.
Chinese media reports that the first Bitcoin and Ethereum spot ETFs will be listed in Hong Kong at the end of April, but mainland investors are prohibited from trading them.
AlexHong Kong is launching Asia's first spot Bitcoin and Ether ETFs, potentially establishing itself as a crypto hub in the region, though mainland Chinese investors are currently restricted. The move could trigger a ripple effect across Asia, encouraging other regulators to explore similar initiatives, potentially reshaping the regional crypto investment landscape.
WeatherlyBlackRock's IBIT recorded its first $0 inflow day, breaking a 71-day streak, while other ETFs also faced outflows, signaling a temporary market downturn.
MiyukiVitalik Buterin criticizes ZKasino for exploiting zero-knowledge proofs, leading to a $32M rug pull and significant backlash from the crypto community.
WeiliangAllegations suggest that the crypto mixer was involved in processing $2 billion worth of illicit transactions and enabling money laundering activities totalling $100 million.
KikyoWorldcoin faces an orb shortage as demand for its iris-scanning technology surges. Despite challenges, Worldcoin aims to revolutionise finance through biometric authentication and blockchain innovation.
AnaisZach Pandl, the research director at Grayscale, suggests that investor interest in BTC is likely to persist, especially with the ongoing high expenditure and a longer, higher interest rate policy prevailing in the U.S. government.
AlexDespite a brief surge following last week's Bitcoin halving, the cryptocurrency market experienced a downturn in the latter half of this week. Low trading volume has characterized the post-halving period. Among major altcoins, Ethereum attempted a rebound, nearing $3200, but without a significant reversal; Solana faces a similar situation, struggling to break the $150 resistance; Ripple has been particularly volatile amid ongoing litigation with the SEC.
MiyukiThe company cautioned that a potential reversal by the SEC of its stance, maintained since 2018, regarding Ether's classification as a security, could have dire consequences for the network, potentially stifling innovation within the US.
CatherineThe US retirement fund GRP has disclosed that it holds investment exposure in 7 Bitcoin spot ETFs.
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