Spot Bitcoin ETFs Show Significant Growth Within Nine Months

These funds are attracting capital faster than some large traditional ETFs, and are expected to double in size by 2025 and even quadruple in size by 2027.

Fidelity ETF Closes in on Outstanding Performance

BlackRock’s IBIT fund leads the sector with $21.7 billion in holdings. Meanwhile, Fidelity’s Wise Origin Bitcoin ETF has strengthened its position in the market thanks to some strong inflows of late. With a total size approaching $10 billion, the Fidelity ETF primarily attracted attention for its performance on Friday.

At the same time, Fidelity’s fund made $20 million more in gains than the ARK 21Shares Bitcoin ETF, which saw inflows of AUD$145 million.

IBIT Achieves Strong Weekly Performance

While IBIT saw no net inflows on Friday, its overall weekly performance impressed investors. On Monday, total inflows across all funds reached AUD$349.4 million, while total outflows from Tuesday to Thursday were $208.4 million.

Forecasts for next year suggest that the size of spot Bitcoin ETFs will double, with a four-fold expansion over the next three years appearing plausible.

SEC weighs other crypto ETF applications

The share of crypto ETFs for cryptocurrencies other than Bitcoin and Ethereum remains uncertain. The SEC continues to review applications for digital asset ETFs such as XRP and Solana. However, analysts believe that the likelihood of XRP ETF approval is low due to the ongoing dispute between Ripple and the SEC.

SEC Commissioner Ueda criticized the agency’s approach to the crypto industry, saying: “This approach is hurting the sector.” Meanwhile, VanEck executives, including Matthew Siegel, argue that Solana should be classified like Bitcoin and Ethereum. Siegel suggested that the fate of the Solana ETF app could hinge on the outcome of the upcoming presidential election.

Regulatory Framework Remains Uncertain

With the ETF approval process for cryptocurrencies other than Bitcoin and Ethereum remaining uncertain, even the prospects for approval for these two funds were once considered low. However, ongoing regulatory changes continue to shape market expectations.

Fidelity and BlackRock, retain their leadership. The future of the sector is increasingly tied to how the regulatory framework and the SEC’s approach evolves.