In 2024, a significant event occurred in the financial markets: the introduction of spot Bitcoin ETFs, leading to massive investments and changing the perception of cryptocurrency as an investment asset.
Launch of Spot Bitcoin ETFs in 2024
The approval by the Securities and Exchange Commission (SEC) of a spot Bitcoin ETF in January 2024 marked a historic turning point for the crypto market. For over a decade, applications for spot ETFs had been systematically rejected due to concerns over Bitcoin's volatility and susceptibility to manipulation. However, after a legal battle led by Grayscale and other asset managers, the decision was finally made. This opened the door to a massive influx of institutional investments.
Bitcoin Surpasses Gold in Popularity
The rise of spot Bitcoin ETFs was not limited to commercial success. In November 2024, BlackRock's iShares Bitcoin Trust (IBIT) reached $33.2 billion in assets under management, surpassing the iShares Gold Trust (IAU), which peaked at $32 billion. This illustrates the evolving perception of Bitcoin as a valuable asset that now competes with gold. It is now seen as a hedge against inflation and economic instability.
Future of Crypto ETFs and Vanguard's Involvement
The success of Bitcoin ETFs has paved the way for the expansion of the crypto ETF market, with new products anticipated for 2025. The financial community is awaiting the approval of several funds dedicated to other cryptos, notably Solana and XRP. According to Polymarket, the probability of a Solana ETF being approved in 2025 is 74%, while that for an XRP ETF is 70%. Additionally, there may be a shift in strategy from Vanguard, which has previously not included Bitcoin in its offerings, but the appointment of Salim Ramji, a former BlackRock executive, may change this stance.
The rise of the spot Bitcoin ETF in 2024 confirmed investors' interest in this asset and demonstrated that a regulated framework could attract institutional capital on a large scale. This has consolidated Bitcoin as a fully-fledged financial asset. The year 2025 might extend this trend with new ETFs and an expanded participant base.
