- US Bitcoin ETFs have transformed the cryptocurrency landscape in their inaugural year with BlackRock’s IBIT emerging as a standout performer, accumulating over US$50 billion in assets under management.
- Kaiko’s analysis reveals the ETFs played a crucial role in maintaining Bitcoin’s price stability during significant market pressures including government liquidations and macro-economic shocks throughout 2024.
- The ETF market has demonstrated remarkable institutional appetite by capturing 5.4% of Bitcoin’s total supply while continuing to show resilience in 2025 with additional net inflows of US$1.33 billion.
- Despite initial regulatory resistance, these investment vehicles have proven their market significance by effectively counterbalancing selling pressure from bankrupt firms and contributing to Bitcoin’s broader market maturation.
Just over a year has passed since the US has approved Spot Bitcoin exchange-traded funds (ETFs), and they certainly have made an impression. Not only have these funds grown at breakneck speed, they have also shaped the crypto industry like nothing before.
All this wouldn’t even have gotten underway if it wasn’t for a US court practically telling the Securities and Exchange Commission (SEC) to drop its opposition to the funds.
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But back to the ETF performance. While Bitcoin hit record highs in December, data from analysts at Kaiko suggests the funds are some of the main drivers behind the price surge.
The ETFs now have a combined AU$177 billion in assets under management (AUM) with net inflows of AU$58 billion.
With $36bn in net flows during their first year, ETFs now manage around $110bn in assets. BlackRock’s IBIT stands out as one of the most successful launches ever, closing the year with over $50bn in assets under management.
Kaiko
Did Bitcoin ETFs Have Any Price Impact?
So, how much of the 2024 rally can be traced back to the ETFs? Well, Kaiko has an answer to that, and in short, it’s: a lot.
The OG crypto surged in March of 2024, and the ETFs presence showed, because following “weeks of selling pressure from bankrupt firms liquidating BTC holdings”, much of the demand came from these funds.
The analysts believe that without the ETFs, 2024 could’ve played out quite differently amid large liquidations by governments.
And according to Kaiko, the funds didn’t simply drive up price, they also helped keep things stable and above water during turbulent times:
Take the summer months for instance. There was significant selling pressure from the German government and during macro-induced market shocks.
Kaiko2025 Sees Mixed Start to ETF Trading
Despite the positive first year, nothing is going up in a straight line, and the Spot Bitcoin ETFs are no exception. 2025 so far has been a mixed bag, with significant buying during the first trading days followed by sell-offs, followed by more buying.
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Considering buying and selling, thus far the ETFs have seen net inflows in 2025 of US$1.33 billion (AU$2.14 billion).
They currently hold 5.4% of all 21 million Bitcoin, with 1,135,676 BTC spread among the funds.
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