The Bitcoin (BTC) market has seen a notable recovery this year, largely due to the growing popularity of Bitcoin ETFs. BTC hit an all-time high of $73,000 in the first quarter of the year, sparking an uptrend that continues today, with a recent high of $104,000.
Donald Trump’s presidential election has had a great impact In this rise, especially over the last month, as he positioned himself as the first pro-crypto president, envisioning the United States as the “crypto capital of the world.”
Trump’s favorable stance towards digital assets has instilled greater optimism among investors, resulting in increased buying pressure from Bitcoin ETF providers such as black rock and Fidelity. Notably, the top 12 Bitcoin ETFs have become the largest holders of BTC, with a combined asset value of over $100 billion.
This figure represents one of the most successful ETF launches in financial history, with 12 Bitcoin ETFs now in place. collective property approximately 1.1 million BTC, equivalent to approximately 5% of all Bitcoin in circulation.
Bitcoin ETFs Expected to Surpass 2024 Inflows
In a recent reportCrypto asset manager Bitwise outlined three key factors that suggest Bitcoin ETFs will continue to experience explosive growth in 2025. Initially, it is important to note that the first year of ETF trading is typically the slowest.
Historical comparisons with gold ETFs launched in 2004 show a significant increase in inflows in subsequent years. For example, gold ETFs started with $2.6 billion in their first year, followed by $5.5 billion in the second year and progressively larger amounts in subsequent years.
The firm suggests that if the 12 Bitcoin spot ETFs in the United States follow a similar trajectory, 2025 could see tickets which far exceed those of 2024.
Another factor contributing to potential growth is the expected participation of major financial operators. Companies like Morgan Stanley, Merrill Lynch, Bank of America, and Wells Fargo have yet to fully deploy their wealth management teams to promote Bitcoin ETFs.
As regulatory environments If they become more favorable under Trump, these institutions are expected to unlock access to Bitcoin ETFs for their clients, potentially directing trillions of dollars into the crypto market.
Investors ‘scale up’
Finally, Bitwise has identified a clear trend among investors known as “staggering.” This pattern indicates that small initial contributions to Bitcoin often lead to larger investments over time.
The asset manager believes that many investors who entered the Bitcoin ETF market in 2024 will double their investments in 2025.
The company’s claim that “3% is the new 1%” indicates a growing acceptance of Bitcoin as a genuine asset class, which they believe will lead investors to devote more of their money to it. wallets to cryptocurrencies.
At the time of writing, BTC had consolidated above $100,900 following a 7% drop to $91,000 earlier in the month. Over the previous 24 hours, the largest cryptocurrency on the market has seen a price increase of almost 4%.
Featured image of DALL-E, chart from TradingView.com
Fountain: NewsBTC.com
