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The Bitcoin (BTC) market has made a remarkable recovery this year, largely due to the increasing popularity of Bitcoin ETFs. BTC reached an all-time high of $73,000 in the first quarter of the year, which triggered a bullish trend that continues today, with a recent high $104,000.
The presidential election of Donald Trump has had great impact in this rise especially in the last month, as he positioned himself as the first pro-crypto President, portraying America as the “crypto capital of the world.”
Trump’s positive position on the digital asset has increased optimism among investors, leading to increased buying pressure from Bitcoin ETF providers such as. BlackRock and Fidelity. Notably, the top 12 Bitcoin ETFs emerged as the largest holders of BTC, with a combined asset value of more than 100 billion.
This figure represents the most successful ETF launch in financial history, with 12 Bitcoin ETFs now in place. joint ownership about 1.1 million BTC—equivalent to about 5% of all Bitcoin in circulation.
Bitcoin ETFs Expected to Exceed Revenue in 2024
The latest reportCrypto asset manager Bitwise has identified three key factors that suggest Bitcoin ETFs will continue to explode in 2025. At the outset, it is important to note that the first year of ETF performance is usually very slow.
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Historical comparisons with gold ETFs launched in 2004 show a significant increase in income over the following years. For example, gold ETFs start at $2.6 billion in their first year, followed by $5.5 billion in the second year, and progressively higher values ​​in subsequent years.
The company suggests that if the 12 spot Bitcoin ETFs in the United States follow the same path, 2025 can see. which do not have far surpassing those of 2024.
Another factor influencing potential growth is the expected participation of large financial institutions. Firms like Morgan Stanley, Merrill Lynch, Bank of America, and Wells Fargo have yet to fully leverage their wealth management teams to promote Bitcoin ETFs.
As control points are getting better under Trump, these institutions are expected to open their clients access to Bitcoin ETFs, which could direct billions of dollars to the crypto market.
‘Rising’ Investors
Finally, Bitwise identified a clear trend for investors known as “stair climbing.” This pattern shows that small initial contributions to Bitcoin tend to lead to increased investment over time.
The asset manager believes that many investors who entered the Bitcoin ETF market in 2024 will again reduce their investments in 2025.
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The company’s assertion that “3% is the new 1%” reflects the increasing acceptance of Bitcoin as a real asset class, which they believe will lead investors to donate a large amount of their assets. portfolios in cryptocurrencies.
At the time of writing, BTC had rallied above $100,900 following a 7% plunge to $91,000 earlier in the month. In the last 24 hours, the market’s largest cryptocurrency has seen a price increase of around 4%.
Featured image from DALL-E, chart from TradingView.com
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