2024 was a historic year for the cryptocurrency market. Over the past decade, the U.S. Securities and Exchange Commission had rejected at least 30 applications for a Bitcoin spot ETF, but on January 11, 2024, a historic turning point arrived. The U.S. Bitcoin spot ETF was officially approved for listing, with a trading volume of $4.6 billion and net inflows of $628 million on its first day. Subsequently, multiple countries, including Hong Kong and Australia, also launched Bitcoin spot ETFs, further driving the legalization of global crypto assets. As of the time of writing, the assets under management of U.S. crypto ETFs have exceeded $122.39 billion, and Hong Kong has reached $467 million. 2024 was the year when crypto assets truly transitioned to mainstream assets. According to the latest 13-F filings, all types of institutions, including endowment funds, pension funds, hedge funds, investment advisors, and family offices, are now holders of crypto ETFs. In this wave of crypto asset mainstreaming, ETFs for other digital assets such as Solana and XRP have also gradually come into public view, laying the groundwork for further development in 2025. This article will review the key milestones of crypto spot ETFs in 2024, analyze the market performance of crypto ETFs over the past year, and look ahead to the development prospects of crypto ETFs in 2025.

Key Milestone Review: The Birth Year of Crypto Spot ETFs

Bitcoin Spot ETF Timeline in 2024

In the early hours of January 11, 2024, the entire cryptocurrency industry held its breath, and global investors anxiously watched the final ruling on the U.S. Bitcoin spot ETF. Finally, the words "officially approved" appeared before everyone's eyes, and the Bitcoin spot ETF was successfully launched, fulfilling the long-held expectations of the industry. On the first day, the trading volume of the Bitcoin spot ETF exceeded $4.6 billion, with net inflows of $628 million. In the first three trading days, the trading volume had reached nearly $10 billion. On January 19, just one week after its launch, the assets under management of the U.S. Bitcoin ETF had already surpassed the Silver ETF, becoming the second-largest ETF product category in the U.S. Following the approval of the U.S. Bitcoin spot ETF, Hong Kong did not want to fall behind. On April 15, Hong Kong gave in-principle approval for BTC and ETH spot ETFs; on April 24, Hong Kong officially approved the Bitcoin spot ETF and Ethereum spot ETF; and on April 30, 6 virtual asset spot ETFs were listed and opened for trading on the Hong Kong Stock Exchange. The initial fundraising size of the Hong Kong crypto spot ETFs was around HK$20 billion, with a calculated net asset value of $2.93 billion. The total trading volume on the first day of the 6 ETFs was approximately HK$875.8 million (about $127 million). The launch of Hong Kong's crypto spot ETFs had a profound impact on the financial landscape of the Chinese region and was also an important step in the further legalization of cryptocurrencies globally. Hong Kong's crypto ETFs adopted a physical redemption mechanism, providing a channel for crypto assets to be converted into traditional financial assets. Subsequently, other countries also gradually began to approve and trade Bitcoin spot ETFs. On June 4, Australia's first Bitcoin spot ETF officially began trading, and the Thai Securities and Exchange Commission also approved the country's first Bitcoin spot ETF. By September 23, the U.S. SEC approved the listing of BlackRock's Bitcoin ETF options on the Nasdaq, and on October 19, the SEC approved the trading of various spot Bitcoin ETF options. The range of Bitcoin-related derivatives has further expanded, bringing the market compliant and deep trading options. Bitcoin ETF options allow investors to make term-based portfolio allocations, particularly suitable for long-term investment, injecting more compliance and trading depth into the market.

Ethereum Spot ETF Timeline in 2024

In 2024, Ethereum spot ETFs saw a series of important developments globally. From Hong Kong to the U.S. and Australia, multiple regions were actively pushing forward the approval and listing of Ethereum spot ETFs. Ethereum, as the "second dragon" of the crypto market, officially came into the sight of traditional investors. On April 24, the Hong Kong Bitcoin spot ETF and Ethereum spot ETF were officially approved, marking the first time Ethereum spot ETFs landed on a major exchange. The Hong Kong Ethereum spot ETF had a net inflow of 14,200 ETH and a trading volume of $29.9 million on its first day. On May 24, the U.S. SEC approved the 19b-4 filing for the first Ethereum spot ETF. This filing was a key step in the legal trading of Ethereum spot ETFs in the U.S. market, opening the door for Ethereum spot products to officially enter the U.S. market. On July 23, the crypto market witnessed another historic moment as the U.S. SEC officially approved the Ethereum spot ETF. The Ethereum spot ETF had a trading volume of over $1.019 billion and net inflows of $106.6 million on its first day. On November 8, the U.S. SEC again delayed its decision on the listing of Ethereum spot ETF options on the New York Stock Exchange. The filing stated that the delay was to conduct further analysis and public comments, particularly on whether the proposed rule change meets the requirements of the Securities Exchange Act.

Other Crypto-Related ETFs Timeline in 2024

After the approval of Bitcoin and Ethereum spot ETFs, Solana spot ETFs also experienced a series of important developments in 2024. On June 20, the first Solana spot ETF application in North America was submitted, marking Solana ETFs' entry into the public eye. Subsequently, 21Shares and VanEck also submitted Solana ETF applications to the SEC. On August 8, the Brazilian Securities and Exchange Commission approved the world's first Solana spot ETF, and on August 21, Brazil approved the second Solana ETF. This was a pioneering move by Brazil, bringing more optimism to crypto supporters. The applications for Solana spot ETFs in the U.S. are ongoing. On November 22, Cboe submitted 4 Solana spot ETF listing applications to the U.S. SEC, and on December 4, Grayscale sought to convert its Solana trust fund into a spot ETF and list it on the NYSE. However, shortly after, sources revealed that the SEC had notified at least two Solana spot ETF applicants that their submitted 19b-4 filings would be rejected. This news indicates that the U.S. is still taking a cautious approach towards Solana spot ETFs. In addition to Solana, XRP is also a focus of institutional attention. Bitwise, 21Shares, and WisdomTree have currently submitted XRP spot ETF applications in the U.S. Furthermore, various types of crypto-related ETFs were launched or entered the application stage in November and December, from single crypto assets to multi-asset portfolios, from index-based to yield-generating. This trend signifies the gradual mainstreaming of the crypto market and the further integration of crypto assets with the traditional financial system. Crypto assets are gradually evolving into one of the core assets recognized by global investors.

How Did the ETF Data Perform This Year?

The total assets under management of ETFs listed in the U.S. exceeded $10 trillion, with $40 billion invested in the cryptocurrency sector. Crypto ETFs currently account for 0.4% of the overall ETF market. However, according to data from K33 Research, the net inflows of Bitcoin spot ETFs in 2024 accounted for 3.5% of the total net inflows of all U.S. ETFs in 2024, a proportion significantly higher than traditional asset classes. Since its launch, the liquidity of the Bitcoin ETF has been 4.5 times faster than the inflation-adjusted liquidity of the Gold ETF. Although the cumulative flow is still behind gold, the assets under management of the U.S. Bitcoin ETF have surpassed gold. Furthermore, the U.S. Bitcoin spot ETF's BTC holdings have exceeded 1.13 million BTC, surpassing Satoshi Nakamoto's Bitcoin holdings, making it the world's largest "Bitcoin holder." These achievements undoubtedly demonstrate that the Bitcoin spot ETF is the "most successful ETF of all time."

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As of December 24, the total net inflow of Bitcoin spot ETFs in the US has reached $35.49 billion, with a total net asset value of $110 billion. Among them, BlackRock's IBIT accounts for nearly 50% of the assets, reaching $53.7 billion. It is worth noting that the asset size of IBIT is equivalent to the total of 50 ETFs focused on Europe (regional + single country), which have existed for 20 years.

The performance of Ethereum spot ETFs in the US was average in the past, but since November, their inflows and liquidity have increased significantly.

On November 13, ETF issuer Bitwise announced the acquisition of Ethereum staking service provider Attestant. On November 20, 21Shares announced the addition of staking functionality to its Ethereum core ETP product, and renamed it "Ethereum Core Staking ETP" (ETHC). Combined with the news of Trump's victory, the market's expectation for the introduction of staking functionality in Ethereum spot ETFs has become stronger.

As of December 24, the total net inflow of Ethereum spot ETFs in the US has reached $2.51 billion, with a total net asset value of $12.35 billion. On December 5, the net inflow reached a record high of $428 million.

Among the Ethereum spot ETFs in the US, the one with the highest net asset value is Grayscale's ETHE, reaching $4.91 billion, followed by BlackRock's ETF with $3.65 billion in net assets. Together, they account for 69.3% of the total assets of Ethereum spot ETFs in the US.

Which crypto ETFs will be approved in 2025?

Multiple Solana ETF applications will face their first review period from January 23 to 25, 2025. However, according to FOX Business reporter Eleanor Terrett, the SEC has notified at least two applicants for SOL spot ETFs that their submitted 19b-4 filings will be rejected. At the same time, insiders revealed that the SEC may not approve any new cryptocurrency ETF applications during the current administration.

Bloomberg senior ETF analyst Eric Balchunas expects issuers to resubmit their applications after the new SEC chairman Paul Atkins takes office. Paul Atkins, who is the co-chair of the Token Alliance of the Digital Chamber of Commerce, is committed to researching and promoting the development of the digital asset industry. His appointment may bring new possibilities for the approval of Solana ETFs.

Bitwise's 10 cryptocurrency index ETF, which includes BTC, XRP, Solana, Cardano, Uniswap, Polkadot, Chainlink, Ethereum, Avalanche, and Bitcoin Cash, will face its first review period on January 18, 2025.

Bitwise's Bitcoin and Ethereum ETF will face its first review period on January 30, 2025. This ETF is a proposed spot cryptocurrency index fund composed of BTC and ETH, aiming to "allow investors to balance their exposure to the two largest cryptocurrencies in an easily accessible form".

In addition, the following crypto ETFs are also awaiting approval:

XRP ETF

· Bitwise XRP ETF

· Canary XRP ETF

· 21Shares Core XRP Trust

· Wisdomtree XRP Fund

Litecoin ETF

· Canary Litecoin ETF

HBAR ETF

· Canary HBAR ETF

In addition to ETFs, the approval of Ethereum spot ETF options will also take place in 2025. Bloomberg ETF analyst James Seyffart said the SEC's final decision may be made around April 9, 2025. However, the SEC is not the only decision-making body, and approvals from the OCC and CFTC are also required.

Outlook for 2025

In 2025, more crypto assets may enter the ETF space. Although regulatory challenges still exist, the continued participation of institutional investors and the gradual maturity of the market will provide more momentum for the future development of the cryptocurrency industry. We can foresee that crypto assets will no longer be just speculative tools, but will become an important part of global investment portfolios, driving the deep integration of traditional finance and digital assets.

Here are the predictions of industry institutions and KOLs on the development of crypto ETFs in 2025:

Forbes predicts: Staking will be first integrated into Ethereum ETFs in 2025. ETFs for other cryptocurrencies (such as Solana) will soon be launched, and a weighted crypto index ETF may also be introduced.

Vance Spencer, co-founder of Framework, predicts: Plans to list ETFs for cryptocurrencies other than Bitcoin and Ethereum will be postponed to 2026.

Research firm Messari predicts: ETF inflows will continue to increase in 2025, especially as Grayscale's GBTC transitions to net inflows, and a spot Solana ETF seems inevitable in the next one to two years.

Coinbase states: Looking ahead, the industry's focus is on issuers potentially expanding the asset range of ETFs to include more tokens like XRP, SOL, LTC, and HBAR, but we believe potential approvals may only benefit a limited asset group.

ETF issuer VanEck predicts: The new SEC leadership (or possibly the CFTC) will approve multiple new spot cryptocurrency exchange-traded products (ETPs) in the US, including a VanEck Solana product. Ethereum ETPs will expand functionality to include staking, further enhancing their utility to holders, while both Ethereum and Bitcoin ETPs will support physical creation/redemption. Whether the SEC or Congress repeals SEC Rule SAB 121, it will pave the way for banks and brokers to custody spot cryptocurrencies.

ETF issuer Bitwise predicts: Bitcoin ETF inflows in 2025 will exceed 2024. Trillions of dollars in assets under management will start flowing into Bitcoin ETFs.

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