Author: Tanay Ved Source: Coin Metrics Translation: Shan Oppa, Golden Finance

Key points:

No. In one year, the Bitcoin ETF attracted $115 billion in assets under management, $32 billion in net inflows, and currently holds approximately 5.7% of the Bitcoin supply.

BlackRock's iShares Bitcoin ETF dominates with 540K BTC, while Grayscale's holdings decline as investors shift to lower-cost options .

Bitcoin ETFs drive institutional adoption, redefine market structure and solidify Bitcoin as a mainstream asset.

Introduction

Spot Bitcoin exchange-traded funds (ETFs) have been popular in U.S. financial markets for more than a year. These vehicles have expanded access to Bitcoin for both retail and institutional investors, attracting billions of dollars of untapped capital and elevating the asset class from niche to mainstream. The offering will likely be remembered as the most successful ETF launch in financial history, with assets under management (AUM) exceeding $110 billion in just one year.

This article looks back at the remarkable success of spot Bitcoin ETFs on their one-year anniversary and reviews their liquidity, prominent issuers, and market shaping Influence.

Let the process begin

After a decade of anticipation, rejected applications, and false tweets that caught the cryptocurrency market off guard, the U.S. Securities and Exchange Commission (SEC) is finally The launch of a spot Bitcoin ETF was approved on January 10, 2024. Shortly after the approval, 11 funds entered the market, vying to attract inflows. Issuers include traditional financial giants such as $11 trillion asset manager BlackRock and Fidelity, as well as local cryptocurrency issuers such as Bitwise.

Source: Coin Metrics Labs

As time went on, inflows began to increase, and by March, total Bitcoin holdings of ETF issuers exceeded approximately 800,000 BTC. The acceleration of inflows coincided with a period of heightened market sentiment, This translated into strength across all sectors of the crypto ecosystem, and while the summer brought a period of consolidation, Donald Trump's victory in the US presidential election in November once again boosted optimism, boosting ETF inflows and others. Market.

Currently, the net inflow of spot Bitcoin ETFs is approximately US$32 billion, holding a total of more than 1.1 million BTC, equivalent to US$115 billion in assets under management. These holdings currently account for approximately BTC. 5.7% of the circulating supply of coins. In other words, this accounts for approximately 1% of the total assets under management of all ETFs in the world, highlighting the huge growth potential in the future.

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Source: Coin Metrics Labs

These Bitcoin ETFs are targeted at 3 major investor groups - individual investors, wealth advisors and institutional investors. The 13F filing discloses the ETF. The buyers behind the move, largely made up of retail and professional investors, include hedge funds and major financial institutions such as Goldman Sachs and Millennium Management, reflecting growing interest in incorporating Bitcoin into investment portfolios, as well as regulated ETF structures.

As revealed in our 2025 Outlook report, we Capital inflows are expected to be in 2025 The AUM of these ETFs is likely to double as easing regulatory conditions bring broader participation from channels such as pension funds, family offices and endowments.

Grayscale's transformation, BlackRock's wealth.

From an individual issuer perspective, not all issuers perform equally. While BlackRock’s iShares Bitcoin ETF (IBIT) has accumulated approximately 540,000 BTC, Account for all BTC accumulated in ETFs of half, but Grayscale’s GBTC holdings have shrunk from over 600,000 to 200,000, dragging down net flows

Source: Coin Metrics Labs

As of January 19, BlackRock’s IBIT assets under management reached US$59 billion. Asset size exceeds BlackRock iShares Gold ETF (IAU), further solidifying Bitcoin’s status as “digital gold.” Bloomberg ETF analyst Eric Balchunas said IBIT reached the $50 billion AUM milestone in just 227 trading days, beating the previous record of 1,323 days set by the iShares Core MSCI Emerging Markets ETF.

Source: Coin Metrics Institutional Indicators, Grayscale

On the other hand, Grayscale Bitcoin Trust ( GBTC) was once the primary vehicle for obtaining indirect Bitcoin investment, but faced challenges after converting to ETFs. Investors seek newly launched Bitcoin ETFs that have expense ratios lower than Grayscale’s 1.5%. Additionally, a portion of GBTC’s assets were spun off into the Grayscale Bitcoin Mini Trust (BTC), a low-cost alternative to its predecessor.

How do ETFs affect BTC prices and market structure?

By analyzing 12 months of data, we can begin to understand the interplay between spot Bitcoin ETF net flows and BTC prices. As a large and stable source of structural demand for BTC, spot ETFs have a measurable impact on price movements, albeit somewhat variable over time. The chart below shows that large inflows or outflows occur simultaneously with major price movements. However, this relationship is inconsistent, as in addition to factors such as MicroStrategy's market impact, broader market conditions and investor sentiment also play a role.

Source: Coin Metrics

Scrolling correlation chart highlights the changing relationship between ETF net flows and BTC price changes. Correlations tend to strengthen during periods of strong market momentum or significant inflows, suggesting that ETF inflows can be a structural driver of BTC price increases as issuers accumulate BTC to meet demand. Instead, rising BTC prices can attract more capital inflows as retail and institutional investors allocate funds to ETFs, creating a reinforcing feedback loop.

Source: Coin Metrics

Another dynamic to consider is the role of basis arbitrage. This involves buying spot ETFs while shorting futures on venues like CME for yield. Such trades can offset upward price pressure from ETF inflows. Supporting this, CME’s Bitcoin futures open interest rose from $6.2 billion when the ETF launched to $22.7 billion in December, highlighting the impact of such a mechanism on market structure.

Conclusion

Spot Bitcoin ETFs have reshaped the cryptocurrency investment landscape, attracting institutional and retail capital while driving structural demand for BTC. Over the past year, they have demonstrated their potential to legalize and expand the use of digital assets. Ethereum ETFs, despite their slow start, have begun to gain momentum, reflecting growing demand for such products. As the market matures, new opportunities, such as multi-asset ETFs staking ETH and SOL ETFs or other crypto-assets, may further increase accessibility and solidify the role of ETFs in bridging traditional finance and digital assets. The next wave of ETF inflows could unleash even greater growth, fueling cryptocurrency adoption momentum.