Key Takeaways
- Spot Bitcoin ETFs reached $600 billion in trading volume in 2024.
- BlackRock's Bitcoin ETF now holds over 500,000 BTC in assets.
- Stablecoin Tether saw a $16 billion surge in market cap in 20 days.
Spot Bitcoin exchange-traded funds (ETFs) are celebrating a significant milestone: their first anniversary on the market with cumulative trading volumes nearing $600 billion as of December 5.
These ETFs, introduced in January 2024, played a pivotal role in Bitcoin’s record-breaking surge past $100,000 last week.
At The Block’s Emergence conference in Prague, Hany Rashwan, CEO of 21Shares, attributed the momentum to global economic and political shifts.
Rashwan highlighted challenges faced by the U.S. dollar’s reserve currency status and the euro bond’s resilience, remarking:
We’re seeing an inflection point in the global order.
BlackRock and institutional adoption
Institutional adoption has also fueled the rally, with BlackRock’s iShares Bitcoin Trust (IBIT) amassing over 500,000 BTC ($48 billion in assets). This makes it the third strongest ETF instrument in the U.S..
Vetle Lunde of K33 remarked:
BlackRock surpassing 500,000 BTC is yet another huge milestone.
Stablecoins bolster demand
SkyBridge Capital’s John Svolos emphasized the role of stablecoins like Tether (USDT) in driving Bitcoin demand.
Tether CEO Paolo Ardoino revealed a $16 billion market cap increase for USDT in just 20 days, coinciding with significant inflows into Bitcoin ETFs.
Bitcoin’s price, up 30% since the U.S. election on November 5, traded near $97,800 at press time.
