Since their introduction three months ago, US-based Bitcoin spot Exchange-Traded Funds (ETFs) have seen substantial investment, according to cryptocurrency analyst of Steno Research, Mads Eberhardt.
“The momentum does not stop here,” he says, explaining that this enthusiasm is likely to spread globally as other countries prepare to launch their own Bitcoin exchange-traded products.
“2024 stands out as the landmark year for exchange-traded crypto products, especially those related to Bitcoin,” says Eberhardt. “After years of existing somewhat separately from traditional finance, the crypto market is finally being recognized as a legitimate part of the broader financial landscape.”
The seeds of Bitcoin’s standout year were sewed back in January, where the US Securities and Exchange Commission (SEC) approved US-listed ETFs that track Bitcoin.
These ETFs allow investors to purchase shares that represent Bitcoin, bypassing the need to directly hold the cryptocurrency.
To Eberhardt, it is unmistakably clear that the US has triggered a wave of global approvals for exchange-traded crypto products.
“The US has essentially sparked a blaze that shows no signs of diminishing,” he says.
“This trend among countries mirrors the institutional adoption of digital assets. It is not just institutions; countries too are no longer hesitant about leading the way in crypto. Instead, their concern now lies with the risk of being left behind.”