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The history of financial markets is marked by turmoil, moments when assets and innovations challenge established rules. 2024 will be remembered as the year Bitcoin definitively crossed a milestone with the rise of spot ETFs. These highly anticipated financial products attracted record inflows, with $129 billion in assets under management in less than a year. Its launch sparked unprecedented enthusiasm, allowing institutional investors to access Bitcoin in a regulated and secure framework. But the impact goes beyond numbers. Bitcoin is no longer just a speculative asset. It currently competes with gold as a store of value. BlackRock’s Bitcoin ETF outperformed its gold-backed counterpart in November, strongly emblematic of a shift in investor perception. As the outlook for 2025 takes shape, one question becomes dominant: Can we maintain this momentum? Between market consolidation, possible expansion into other cryptocurrencies such as Solana and XRP, and the possible entry of new players like Vanguard, 2025 could redefine the balance of power in financial markets. There is a gender.
The approval of the Spot Bitcoin ETF by the Securities and Exchange Commission (SEC) in January 2024 marked a historic turning point for the cryptocurrency market. For more than a decade, applications for spot ETFs have been systematically rejected because U.S. regulators deemed Bitcoin too volatile and susceptible to manipulation. The decision was finally approved after a legal battle led by Grayscale and other asset managers. Thus, the door was opened for a large influx of institutional investment.
The Bitcoin ETF recorded exceptional performance from the first day of trading, with total trading volume of $2.2 billion, an absolute record for an ETF founded in the United States. Among them, BlackRock’s iShares Bitcoin Trust (IBIT) raised $1 billion in just a few hours, establishing itself as the undisputed leader. This momentum continued throughout the year, with net flows exceeding $129 billion by the end of the year. Bloomberg ETF analyst Eric Balciunas highlighted the scale of this phenomenon in a January 2, 2025 publication on social media platform X (formerly Twitter), stating: That’s ahead of established funds like the Vanguard Total Stock Market ETF (VTI). ”
The appeal of these new products can be largely explained by a paradigm shift among institutional investors. For years, major financial companies have been hesitant to get involved directly in Bitcoin, citing the volatility of Bitcoin assets, the lack of a clear regulatory framework, and the challenges associated with custodial assets. With spot ETFs, these barriers are gone. These products allow pension funds, asset managers, and hedge funds to invest in Bitcoin through a regulated, liquid, and transparent framework without having to take custody of the tokens themselves. . These changes accelerated institutional adoption. This adoption propelled Bitcoin into a new financial dimension.
Bitcoin surpasses gold, paving the way for new crypto ETFs
The rise of spot Bitcoin ETFs was not just a commercial success. This marked a symbolic change in the hierarchy of investment assets. In November 2024, BlackRock’s iShares Bitcoin Trust (IBIT) had $33.2 billion in assets under management, surpassing the iShares Gold Trust (IAU), which peaked at $32 billion. The reversal signals an evolving perception of Bitcoin, which has long been considered a speculative asset. It now competes with gold as a store of value in the 21st century, attracting institutional investors seeking protection from inflation and economic instability.
This change did not happen overnight. Since the introduction of the first spot Bitcoin ETF, institutional investors have gradually incorporated Bitcoin assets into their portfolios, reinforcing its legitimacy. At the same time, outflows from gold ETFs accelerated. As a result, some managers preferred to reallocate some of their positions to Bitcoin, which is considered to perform better under macroeconomic stress. This trend has been confirmed by the rise in Bitcoin prices, further solidifying its attractiveness compared to traditional assets.
The success of Bitcoin ETFs has paved the way for the expansion of the crypto ETF market with new products in preparation for 2025. Therefore, the financial community is looking forward to the approval of several funds specializing in other cryptocurrencies, especially Solana and XRP. According to Polymarket, the Solana ETF has a 74% chance of approval in 2025, while the XRP ETF has a 70% chance. These numbers reflect investor interest in diversification beyond Bitcoin, particularly blockchain, which offers specific use cases such as smart contracts and decentralized finance.
In parallel, strategic changes could further expand this institutional adoption. Vanguard, a major asset management company with $9 trillion under management, has so far been reluctant to incorporate Bitcoin into its services. However, the recent appointment of former BlackRock executive Salim Ramji to the company’s executive team could change that position. His predecessor, Tim Buckley, showed marked hostility towards Bitcoin and thwarted any efforts in this area. The pivot away from Vanguard represents a major step forward for the integration of cryptocurrencies into traditional investment portfolios, and could open the door to even greater capital inflows in 2025.
Spot Bitcoin ETF’s rally in 2024 not only confirms investor interest in the asset. This demonstrated that a regulated and structured framework has the potential to attract large institutional investors. This established Bitcoin as a full-fledged financial asset. In 2025, this trend is likely to expand further with new ETFs, increased adoption by financial giants, and expansion into other major cryptocurrencies. It remains to be seen whether U.S. regulators will maintain openness and whether investors will continue to see Bitcoin as a reliable alternative to traditional assets.
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Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined in 2019 Coin Tribune. Consider the potential of blockchain in the field of economics and learn economics with great sensitivity and engagement with informants in public safety and environmental systems and evolution. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher the trend of Marche, analyze the innovative technology and perspective, and analyze the social revolution of Marche.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
