The Bitcoin Spot ETF: One Year of Market Transformation

What impact has the approval of the first Bitcoin spot ETF had on the cryptocurrency world over the past year?

On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin spot ETFs, marking a major milestone for the cryptocurrency market. A year later, these products have reshaped how traditional investors interact with Bitcoin, offering accessible and regulated options to invest in the leading digital currency.

Let’s dive into the events leading up to this historic approval, examine the impact over the past year, and explore future opportunities.

Before the approval: A market without spot ETFs

Prior to January 2024, investors looking for Bitcoin-related products were limited to futures ETFs and exchange-traded notes (ETNs). Unlike spot ETFs, these products do not hold actual Bitcoin but derive their value from futures contracts or other underlying mechanisms. This limitation meant there was no straightforward way for investors to gain direct exposure to Bitcoin through regulated financial instruments.

The demand for a spot ETF was evident. Major players like BlackRock, Fidelity, Grayscale, and Invesco submitted applications, pushing for regulatory approval. After years of rejections and uncertainty, the SEC finally approved the first Bitcoin spot ETFs, revolutionizing the investment landscape.

The first Bitcoin spot ETFs: A historic day

On January 10, 2024, the SEC approved applications from multiple financial institutions. The first Bitcoin spot ETFs to launch were:
(*Converted to spot ETFs)
Trading began on January 11, 2024, driving a massive inflow of capital into the crypto market. Bitcoin surged in popularity, fueled by the accessibility of these products.

Tracking the progress: key developments in 2025

Fast forward to January 14, 2025, the market now boasts 12 U.S. Bitcoin spot ETFs managed by 11 different firms. Over the past year, these ETFs experienced significant inflows and outflows, peaking during key months like March, June, November, and December 2024. Outflows were particularly high in May, November, December 2024, and January 2025. Here is an article on recent BlackRock outflows.


The largest ETFs today are:

1. BlackRock – approx. $54 billion in Bitcoin (Assets Under Management, AUM)
2. Fidelity – approx. $20 billion AUM
3. Grayscale – approx. $20 billion AUM in its Bitcoin Trust

These funds alone account for over $90 billion in AUM. In total, U.S. Bitcoin spot ETFs manage more than $110 billion—a testament to Bitcoin’s growing appeal among institutional and retail investors.

Global growth and future expectations

While most Bitcoin spot ETFs are based in the U.S., other countries like Canada, Brazil, Germany, and Switzerland also offer similar products. Globally, Bitcoin spot ETFs manage nearly $127 billion, a figure that underscores their increasing acceptance.
This growth could drive further adoption as more countries approve spot ETFs, making Bitcoin investments more accessible worldwide. The requirement for ETFs to purchase actual Bitcoin for their portfolios may also contribute to upward price pressure for the cryptocurrency.

A look through Satoshi Nakamoto’s eyes

Bitcoin’s creator, Satoshi Nakamoto, envisioned a decentralized financial system free from government and institutional control. While Bitcoin ETFs bring Bitcoin to traditional markets, their reliance on large institutions like BlackRock raises questions about whether this aligns with Nakamoto’s vision.

What do you think? Would Nakamoto embrace this evolution 16 years after publishing the Bitcoin white paper, or would they see it as a divergence from Bitcoin’s core principles?

How to invest in a Bitcoin spot ETF

Unfortunately, U.S. Bitcoin spot ETFs remain inaccessible to individual investors in the Netherlands due to regulatory restrictions. Only professional investors can buy them through certain brokers.

For those interested in Bitcoin ETFs, consider these tips:

1. Research Thoroughly – Compare ETF performance and fees before making a decision. You can use ETF scanner platforms for this.
2. Stay Updated – Follow trusted sources for the latest news and developments in the crypto market.
3. Choose Trusted Brokers – Specific platforms offer access to various ETFs. Ensure you verify the type of ETF and its suitability for your goals.

Summary

The approval of the first Bitcoin spot ETFs marked a transformative moment for the crypto market. A year later, these products have demonstrated their potential to attract massive capital and broaden Bitcoin’s appeal. While not yet available to everyone, their growing popularity hints at a promising future for cryptocurrency investments.
Will you join the next wave of Bitcoin investors?