Bitcoin has recorded a three-digit percentage uptick since the US spot ETFs launched, which some speculated would mark the market top.
The US Bitcoin spot exchange-traded funds made their debut in January 2024, with eleven issuers offering the investment product upon launch. Interestingly, the breakthrough followed court persuasion from Grayscale and BlackRock entering the race to provide the Bitcoin-focused product to their clients.
Well, the rest has been history. The traditional investment vehicles offering alternative exposure to Bitcoin saw pent-up demand upon market debut, driving prices to unprecedented highs. ETF Store president Nate Geraci highlighted this impact and contrary opinions on the premier asset’s price trajectory following the spot ETFs’ launch.
Bitcoin’s Price Up 138% Since ETFs Launch
In a tweet today, Geraci stressed that Bitcoin has been oozing bullishness since the launch of spot ETFs on January 11, 2024. At the start of the day, Bitcoin traded at $46,672; however, the pioneering cryptocurrency has rallied 138% to its current price of $109,753.
The ETF Store president noted that some suggested that the launch of the products marked the market’s top. Remarkably, certain market watchers urged investors to sell the news when the investment vehicles debuted, as optimism about their rollout had spurred a Bitcoin uptrend from around $30,000.
However, Bitcoin has defied that sentiment, spurred partly by the products’ success. The flagship cryptocurrency appreciated 121% in 2024, further extending its gains this year. Meanwhile, BTC had also attained a new all-time high of $112,000, defying its 2021 peak price of $69,000.
The Most Successful ETF Launch in History
The US Bitcoin spot ETFs achieved a remarkable feat in their first year amid instant institutional adoption. The issuers raked in a jaw-dropping $36 billion net inflow in 2024, becoming the first ETFs in history to record such traction in their inaugural year.
The BlackRock iShares Bitcoin Trust also made history, becoming the most successful ETF launch ever. The fund became the fastest to reach $50 billion in assets under management. It achieved the milestone in 226 days, trouncing the 1,329-day record held by the iShares Core MSCI EAFE ETF.
Bitcoin ETFs’ Renewed Momentum
After a slow start to the year, incessant inflows into the US Bitcoin spot ETFs have resumed. For perspective, the investment vehicles have had mostly net inflows since April 17, with just three net outflow days in the 25 trading days. The momentum saw IBIT surpass the Vanguard S&P 500 ETF last week in daily positive flow for the first time.
Moreover, net inflows moved from $35.37 billion to $44.58 billion during the window, representing a staggering $9.21 billion addition. Furthermore, Friday’s daily net inflow of $211.74 million brings the US Bitcoin spot ETFs’ cumulative total to $44.53 billion and a net asset of $131.4 billion.
