Bitcoin (CRYPTO: BTC) has broken the barriers in 2024 with the launch of its exchange-traded products (ETPs). According to JPMorgan analyst Kenneth B. Worthington, the impact was revolutionary. From institutional adoption to market expansion, the marriage of traditional finance and cryptocurrency has reshaped the financial landscape, and a few key players have reaped the rewards of this revolution.
The great leap in the cryptocurrency market
The total market capitalization of cryptocurrencies almost doubled in 2024, supported in part by ETPs, which promoted accessibility and legitimized digital assets. Worthington notes that hedge funds, pension managers and wealth advisors have all rushed into Bitcoin ETPs, boosting market confidence. With nearly $36 billion in net assets newly invested in Bitcoin ETPs in just one year, BlackRock’s IBIT led the charge, raking in nearly $38 billion in net sales.
Grayscale had a tougher time, losing $22 billion after converting its Bitcoin Trust to an ETP. Despite these difficult times, its new retail-friendly BTC vehicle has attracted nearly $900 million.
Read also: Massive transfer of $903 million in Bitcoin shakes up the cryptocurrency market: What’s happening?
Who are the big winners?
BlackRock Inc (NYSE:BLK), Coinbase Global Inc (NASDAQ:COIN) and Virtu Financial Inc (NASDAQ:VIRT) emerged victorious from the operation.
BlackRock saw a ~$54M boost in revenue, while Coinbase thrived as a custodian and trading partner, benefiting from the increased volume of its tokens. Virtu capitalized on its role as market maker on all 11 Bitcoin ETPs.
Perspectives: regulatory roulette
The future of crypto ETPs rests on the regulatory dynamics of 2025. Although new products including tokens such as Solana (CRYPTO: SOL) and Ripple (CRYPTO:XRP) are awaiting SEC approval, Worthington warns that investor demand could be lukewarm. The next wave may be more focused on refining cryptocurrency infrastructure than introducing new assets.
Bitcoin ETPs may have found a place in 2024, but only time will tell how long this flame will continue to burn.
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