Growth in the Bitcoin ETF Market

The spot Bitcoin exchange-traded funds (ETFs) market in the U.S., which began operations on January 10, 2024, achieved a trading volume of $44.2 billion in its first year. In January 2025 alone, the Bitcoin ETF market attracted approximately $5 billion in investments. This surge in volume led Bitwise investment manager Matt Hougan to predict that the U.S. Bitcoin ETF market could see over $50 billion in inflows by the end of 2025.

Teng: The Impact of Institutional and Retail Demand

Teng highlighted that regulatory compliance and institutional participation are ensuring that the digital asset ecosystem is becoming a “critical part of the broader financial system.” According to Binance’s October 2024 report, 80% of the Bitcoin ETF demand comes from retail investors. Additionally, retail investors are increasingly moving their holdings from digital wallets and centralized exchanges into ETFs, which provide greater regulatory protection.

Institutional investors are also continuing to show interest, with investment advisers and hedge funds emerging as the fastest-growing groups in the space.

Trump Media Files Trademark for Crypto ETFs

In response to Teng’s tweet, community members pointed out that true decentralization guarantees financial sovereignty for individuals. Meanwhile, recent data indicates a decline in interest in futures trading. On February 6, Trump Media and Technology Group (TMTG), the media and technology company owned by U.S. President Donald Trump, filed trademark registrations for various ETFs and separately managed accounts (SMAs) related to its Truth Social platform and Truth+ video streaming service. These filings include products like the Truth.Fi Made in America ETF and Truth.Fi Bitcoin Plus ETF.

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In 2024, the US emerged as the biggest investor in spot Bitcoin exchange-traded funds (ETFs), while Canada, despite being the first country to launch a spot Bitcoin ETF, became one of the major losers.

US spot Bitcoin ETFs accounted for 100% of the $44.2 billion in crypto exchange-traded product (ETP) inflows in 2024, making the US the largest holder of Bitcoin ETFs in terms of assets under management (AUM).

Switzerland, the second-largest buyer of crypto ETPs in 2024, only saw $630 million in inflows, a massive 98% gap compared to the US.

Meanwhile, Canada, which launched the first physically-settled Bitcoin ETF in 2021, saw a record $707 million in crypto ETP outflows in 2024, reflecting a shift towards more liquid US alternatives.

Why is the US Leading in Bitcoin ETFs?

The success of US Bitcoin ETFs comes just one year after the US Securities and Exchange Commission approved spot BTC ETFs in January 2024.

The US dominance in Bitcoin ETFs is no surprise, given its position as the largest ETF market globally.

US Equities Dominate Global Stock Value in 2024

Matt Hougan, Chief Investment Officer at Bitwise: “The US has by far the largest ETF market. The global ETF market is about $15 trillion; the US accounts for $10.5 trillion of that. It’s natural that we would be the largest.”

The US is the birthplace of ETFs and represents more than 70% of global ETF AUM, says Matt Mena, Crypto Research Strategist at 21Shares, adding:

“With decades of investor familiarity and trust in the ETF structure, the US has naturally become the dominant market for these products.”

The US is also the largest capital market globally, with the US stock market alone accounting for over 60% of the total global stock market capitalization, Mena adds.

James Butterfill, Head of Research at CoinShares: “US investors have historically been more adventurous and open to risk opportunities, particularly in the technology space; therefore, it’s no surprise that their Bitcoin ETFs lead in terms of AUM.”

Canada ETFs: $4.2 Billion Inflows in 2021 vs. $707 Million Outflows in 2024

Canada saw its largest-ever outflows from crypto ETPs in 2024, totaling $707 million, according to data from CoinShares.

Canada’s 2024 crypto ETF outflows surpassed its previous record outflows of $151 million in 2022.

Canada Crypto ETF Outflows (2024)

Canadian investment firm Purpose Investments launched the Purpose Bitcoin ETF in February 2021, making Canada the first country in the world to debut spot Bitcoin ETFs.

The world’s first spot BTC ETF saw a huge debut, with $564 million in assets under management (AUM) within just five days of launching. Following the launch, Canadian crypto ETPs saw $4.2 billion in inflows in their first year of trading.

Canadian Crypto ETF Investors Shifting to US-Based Options

Canada experienced the largest Bitcoin ETF outflows in 2024, largely due to a shift in investor behavior following the launch of US spot BTC ETFs, according to Mena from 21Shares.

This shift was driven by US Bitcoin ETFs offering greater liquidity, broader investor participation, and institutional support.

“In essence, these Canadian ETFs benefited from regulatory arbitrage over the US, where such products were unavailable,” Mena noted, adding:

“Once spot Bitcoin ETFs began trading in the US, a significant number of non-Canadian investors swiftly pulled their funds from Canadian ETFs and moved into US-domiciled products.”

This shift led to Canadian crypto ETFs becoming the only ETF category in the country to see outflows in 2024, according to Bloomberg.

With US Bitcoin ETFs dominating the global crypto ETF industry, CoinShares’ Butterfill suggested that no other market is likely to surpass US AUM for Bitcoin products.

“At the moment, though, European issuers like ourselves are offering a much more diverse set of ETPs and more efficient settlement processes for crypto ETFs, offering staking yields in ETPs as a good example,” he said.

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Wu Jiexhuang, a member of Hong Kong’s Legislative Council, suggested that Hong Kong should leverage China’s “one country, two systems” policy to incorporate Bitcoin into its national reserves. Speaking to the state-owned newspaper Wen Wei Po, Jiexhuang proposed that Hong Kong could study the market impact of U.S.-based spot Bitcoin exchange-traded funds (ETFs).

Jiexhuang pointed to smaller countries, such as El Salvador and Bhutan, that have integrated Bitcoin into their strategic reserves, as well as certain U.S. states. He also mentioned U.S. President-elect Donald Trump‘s proposal to recognize Bitcoin as a strategic reserve asset, which could significantly impact traditional markets.

China’s Role in Ensuring Hong Kong’s Financial Stability

According to Jiexhuang, Hong Kong authorities should make good use of the “one country, two systems” framework, first by trying to incorporate Bitcoin into ETFs before exploring further ways to increase Hong Kong’s Bitcoin holdings.

Jiexhuang emphasized Bitcoin’s potential to attract talent and investment while also reinforcing financial stability amid market fluctuations. He argued that holding Bitcoin as part of national reserves could mitigate disruptions caused by wider adoption in traditional markets, providing Hong Kong with a first-mover advantage.

The report also mentioned that Hong Kong’s Financial Services and the Treasury Bureau will develop cryptocurrency regulations based on the “same business, same risks, same rules” philosophy.

Jiexhuang concluded, “If major economic powers take the lead in including Bitcoin in strategic reserves, the value of Bitcoin will become more stable, causing other countries to follow suit and reduce their holdings of traditional assets.”

He added, “This would lead to a decrease in the price of traditional assets and shrink the fiscal reserves held in traditional assets by governments.”

Hong Kong Regulators Aim To Make A Significant İnvestment in Bitcoin

According to the report, China currently holds 190,000 Bitcoin through various confiscation efforts, making its Bitcoin reserve second only to that of the United States.

In mid-2024, another Hong Kong Legislative Council member, Johnny Ng, announced plans to collaborate with various stakeholders to assess the feasibility and potential benefits of incorporating Bitcoin into the special administrative region’s financial reserves.

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Ng emphasized the increasing global awareness of Bitcoin, noting that it has become a key element in discussions about digital assets and their integration into traditional financial systems.

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Leading the field, the iShares Bitcoin Trust (IBIT) achieved a significant net inflow of $110.4 million, therefore displaying great investor confidence. The Fidelity Wise Origin Bitcoin Fund (FBTC) barely gained $2.8 million after IBIT.

After two days of flat flows, the Grayscale Bitcoin Trust (GBTC) saw a notable net outflow of $53.9 million. Comparably, the Bitwise Bitcoin ETF (BITB) declared a loss of $6 million, thereby balancing about half of the profits of the day. BITB had kept a five-day inflow run before this.

Prominent crypto analyst DustyBC Crypto said on X that Bitcoin ETFs have unequivocally disproved current questions about their influence and viability in the market. Veteran trader and analyst Peter Brandt presented a wary view, nevertheless. Though he expressed appreciation for Bitcoin’s recent price increase, he underlined the continuous pattern of lower highs and lower lows, pointing out that this tendency continues even with the enthusiasm over ETFs and the approaching halving.

Bitcoin is trading at $64,956.09 as of July 18, 2024, down 1% over last 24 hours. With daily trade volume of $30.2 billion and a market value of over $1.21 trillion, Bitcoin is.

On July 17, other Bitcoin ETFs—those from Ark Invest, VanEck, Valkyrie, Franklin Templeton, WisdomTree, Hashdex, Invesco, Galaxy—did not report any flows. Furthermore per statistics from July 16, 2024 WisdomTree Bitcoin Fund (BTCW) and Hashdex Bitcoin ETF (DEFI) have not witnessed any inflows or outflows for a lengthy time.

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Major Inflows and Trading Volumes

With $117.25 million, BlackRock’s IBIT, the biggest spot Bitcoin ETF by net asset value, saw the most net inflows of the day according to SoSo Value data. With a volume of $1.24 billion, the fund also ranked as the most traded Bitcoin ETF Monday. With net inflows of $117.19 million, Ark Invest and 21 Shares closely followed.

On Monday, Bitwise’s BITB showed $15.24 million worth of inflows while Fidelity’s Facebook TC saw net flows of $36.15 million. Net flows yesterday also reported by funds from VanEck, Invesco, Galaxy Digital, and Franklin Templeton.

On Monday Grayscale’s GBTC reported zero transactions as well as ETFs from Valkyrie, WisdomTree, and Hashdex.

Monday’s trading value on the U.S. spot Bitcoin funds came to $2.26 billion overall. While the volume on some days approached $8 billion, the trading activity in spot Bitcoin ETFs remained less than in March. Since their January inception, the ETFs have attracted $16.11 billion overall net inflow.

Bitcoin’s Legitimacy and Future Prospects

In a Monday CNBC interview, BlackRock co-founder and CEO Larry Fink declared that Bitcoin has evolved into a “legitimate financial instrument” therefore correcting his earlier dubious opinions on the cryptocurrency.

Spot Ether ETFs, which will probably debut on July 23, will create even more buzz in the crypto scene.

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