One year of spot BTC ETFs: how did this revolutionary fund shape up?

Was there a bigger headline for the space in 2024 than the January 10 approval of Spot BTC ETFs? Many believe the decision from the U.S. Securities and Exchange Commission (SEC) marked a sizable leap forward for Bitcoin’s mainstream adoption. The funds help to bring more legitimacy to the asset while exposing an entirely new group of investors to crypto's premier asset.

Now one year from the approval, how did the arrival of Spot BTC ETFs shape up? Read on as we spotlight some of the key data and developments.

Spot BTC ETFs so far: success or slump?

It's hard to argue about the overall performance of the Spot BTC ETFs. A total of 11 funds have been approved by the SEC to date, accumulating a total net asset value of $107.64 billion — 5.74% of BTC's total market cap. The funds' cumulative total net inflow for January 10, 2024 to the same date in 2025 reached $36.22 billion, with November 7, 2024 bringing the highest total net flows in a single day of $1.7 billion.

The funds' cumulative volume over the past 12 months emphasizes the accelerating demand for the vehicle. The figure had reached $290.44 billion in the six months after approval, and had topped $663.78 billion by January 10, 2025. Meanwhile, March 5, 2024 brought the largest daily volume of $9.93 billion, with BlackRock's iShares Bitcoin Trust (IBIT) contributing the majority of the day's volume at $3.78 billion.

Still, crypto's inherent volatility was evident across the year, as inflow spikes were contrasted by major outflows. Although the Grayscale Bitcoin Trust ETF (GBTC) recorded an impressive one-year return of 105.77%, the fund also saw outflows totaling more than $21 billion.

Approved spot BTC ETFs as of January 17, 2025

Source: Blockworks

What factors influenced spot BTC ETF performance?

The figures above demonstrate that high interest in the spot BTC ETF prior to launch translated into firm action. Throughout the year, we saw a predictable seesaw of inflows and outflows as traders locked in profits and new funds flowed in. However, various macroeconomic factors also influenced the performance of spot BTC ETFs.

BTC price action

Interestingly, the following data suggests a lack of consistent correlation between Bitcoin's price action and ETF performance. For example, major ETF inflows were seen on November 11 and November 13, 2024, when prices closed at a new high of $80,471.41 and broke through $90,000 for the first time, respectively. However, months before on August 5, BTC prices crashed below $50,000 following the release of a U.S. jobs report revealing record-high unemployment and a sluggish economy. Rather than spooking investors, spot BTC ETF funds saw a spike in volume to $5.29 billion for the day — up from $2.3 billion during the previous trading day.

On the other hand, rising prices haven't always translated into healthier inflows. In March 2024, BTC's value rose by 10% following a positive Fed outlook despite $724 million in ETF outflows, including $261.5 million in a single day. Evidently, although price action contributes to ETF performance, its impact is far from predictable.

Political shifts

Crypto and politics became more closely intertwined during 2024, as the U.S. election thrust the industry's regulation and future direction into the spotlight. With Republican candidate Donald Trump pushing a pro-crypto agenda and announcing plans for a strategic Bitcoin reserve, we saw how political movements brought volatility to Bitcoin ETFs. Although total net flows fell to –$541.1 million the day before the election, by November 6, the day Trump was announced as the 47th President of the United States, total net flows jumped by more than 214% to $621.9 million.

Economic policy

The previous 12 months have also shown how economic policy announcements can shift the performance of spot BTC ETFs — and how unpredictable this dynamic can be. The general consensus is that lower interest rates usually bring higher crypto prices. This wasn't the case following December 2024's Federal Open Market Committee meeting, where the Fed agreed to cut rates by 25 basis points. Despite the decision, the Fed also projected just two rate cuts for 2025, creating a hawkish outlook in the medium term that ultimately led BTC prices below $100,000. Spot BTC ETF total net flows fell into the negative at –$671.9 million on the day after the announcement.

How did spot BTC ETFs compare to non-crypto ETFs?

Many eyes were on the 11 approved spot BTC ETFs given the significance of their arrival after years of attempts. How did the instrument compare to non-crypto ETFs? Let's take a look.The anticipation among investors for the spot version of the BTC ETF (futures ETFs have been available since 2021) is best reflected in the rapid success of the funds in their first year. Four of the 11 spot BTC ETFs rank among the top 20 largest ETFs one year after launch — iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust ETF (FBTC), Ark/21 Shares Bitcoin Trust (ARKB), and Bitwise Bitcoin ETP (BITB). IBIT tops the list of all ETFs with over $52 billion in assets under management (AUM) one year after launching. What's more, it's also the fastest ETF to reach $50B in AUM, taking just 227 trading days — bettering the 1,323 days set by the iShares Core MSCI Emerging Markets ETF (IEMG).

Looking at annual returns, here's how the top three spot BTC ETFs compared to their stock ETF counterparts.

Source: Yahoo! Finance

Meanwhile, looking at inflows during 2024, IBIT ranked third among all US-traded ETFs (crypto and non-crypto), recording more than $37 billion. This was bettered only by the Vanguard S&P 500 ETF (VOO), which registered more than $117 billion in inflows, and the iShares Core S&P 500 ETF (IVV), which marked nearly $87 billion in inflows.

What's to come?

Where does this all leave us for 2025? The sentiment appears to be positive. Mark Connors, founder and chief investment strategist at Risk Dimensions, told CoinDesk that he believed 2025 flows should surpass those seen during 2024. Meanwhile, according to the same commentary, Nate Geraci, president of the ETF Store, believes 2025 could be the "year of crypto ETFs".The catch? The only certainty in crypto is its uncertainty. Volatility remains. And although 2025 brings new pro-crypto leadership in the U.S., it's impossible to predict the future. However, with record-breaking performance from funds and BTC prices fluctuating around the psychologically-significant $100,000 mark at the close of 2024, traders have the right to be positive for 2025.