- Bitcoin ETFs have achieved remarkable growth in the US market, now holding 5.35% of all BTC worth US$108.9 billion, putting them among the fastest-growing ETFs in history.
- Various financial institutions are proposing innovative crypto-related ETFs, including products that combine S&P 500 returns with Bitcoin values and funds focused on crypto-related convertible bonds.
- Beyond ETFs, institutional adoption is expanding globally, with Switzerland considering a Bitcoin Initiative and Japanese discussions about potential future reserve asset status.
It appears the success of the Spot Bitcoin exchange-traded funds (ETFs), which launched in early 2024 in the United States – and to a lesser extent, Spot Ethereum ETFs – have stoked the interest of Wall Street.
Related: China Tightens Grip: New Regulations to Curb Risky Crypto Trades Among Banks
And in the case of Bitcoin, the funds have been a huge success, being among the fastest (if not the fastest) growing ETFs in history. According to data from BiTBO, the US Bitcoin ETFs now hold 5.35% (or 1.1 million Bitcoin) of all BTC, at a current value of US$108.9 billion (AU$175.6 billion).
So, it’s no wonder that investors and issuers of ETFs want a bit more of that action. According to a Bloomberg report, several innovative financial products were proposed in filings with the US Securities and Exchange Commission (SEC) as of the end of 2024.
Analyst: “We’ll See Crypto Everything”
As per the report, these included an ETF from ProShares that would calculate the S&P 500’s return using Bitcoin values.
Additionally, Strive Asset Management and REX Shares planned funds focused on convertible bonds from companies investing in Bitcoin – such as the now NASDAQ100-listed MicroStrategy. Volatility Shares also proposed launching inverse and leveraged funds based on Solana, as well as a fund tracking a major digital token through futures contracts.
Bloomberg Intelligence’s Athanasios Psarofagis commented on the matter calling it “the continued evolution of launches to incorporate crypto strategies into ETFs”, and that 2025 is bound to see a continuation of this trend.
We’ll see a lot of these in 2025. It’s the hot thing — issuers love to strike when the theme is hot. We’ll see crypto everything.
Athanasios Psarofagis, Bloomberg IntelligenceRemember, there are other crypto ETFs currently pending approval by the SEC. There are several Solana and XRP ETF applications but also the much-anticipated EZPZ fund.
Franklin Templeton’s crypto Index ETF, which would track the CF Institutional Digital Asset Index and offering exposure to Bitcoin and Ethereum to start with, has been delayed until Monday, January 6.
“Global Domino Effect” to Kick Off Bitcoin Adoption Beyond ETFs
And there are other exciting developments beyond ETFs, as institutional adoption continues. As reported, Switzerland’s Federal Chancellery has given the green light for a “Bitcoin Initiative” in the alpine country, with a pending Federal Assembly review and potential Swiss-wide referendum.
And while Japan has slammed the brakes on a proposal to make Bitcoin a reserve asset for the time being, the country’s answer to MicroStrategy, Metaplant, thinks it’s going to happen at some stage.
Related: Analyst Warns of Lacklustre Year for Ethereum Despite Stellar Month for ETFs
CEO Simon Gerovich said that a US adoption of Bitcoin as a strategic reserve asset would start a “global domino effect”, leading to a worldwide rush on the largest crypto.
Sure, only time will tell if he’s right, but his sentiment was mirrored by Japanese Prime Minister, Shigeru Ishiba, who hinted that they’re waiting for a US lead on the matter, saying it “is difficult for the government to express its views”.
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