Bitcoin's 2024 Revolution: ETPs Double Crypto Market Cap, Big Winners Emerge

Bitcoin BTC/USD broke new ground in 2024 with the launch of its spot exchange-traded products (ETPs). According to JPMorgan analyst Kenneth B. Worthington, the impact was game-changing. From institutional adoption to market expansion, crypto's TradFi marriage reshaped the financial landscape—and a few key players reaped the rewards.

The Crypto Market's Big Leap

The total market cap for cryptocurrencies nearly doubled in 2024, driven in part by ETPs boosting accessibility and lending legitimacy to digital assets. Worthington notes that hedge funds, pension managers, and wealth advisors flocked to Bitcoin ETPs, propelling market confidence. With ~$36 billion in net new assets flowing into Bitcoin ETPs in just a year, BlackRock's IBIT led the charge, raking in ~$38 billion in net sales.

Grayscale had a rockier ride, shedding $22 billion after converting its Bitcoin Trust into an ETP. Despite the rough patch, its new retail-friendly BTC vehicle attracted ~$900 million.

Who Won Big?

BlackRock Inc BLK, Coinbase Global Inc COIN, and Virtu Financial Inc VIRT emerged as the clear winners.

BlackRock saw an estimated ~$54 million revenue boost, while Coinbase thrived as a custodian and trading partner, riding high on increased token volumes. Virtu capitalized on its role as a market maker across all 11 Bitcoin ETPs.

Looking Ahead: Regulatory Roulette

The future of crypto ETPs hinges on regulatory dynamics in 2025. While new products featuring tokens like Solana SOL/USD and Ripple XRP/USD await SEC approval, Worthington warns investor demand may be tepid. The next wave might be more about refining crypto infrastructure than introducing new assets.

Bitcoin ETPs may have lit up 2024, but only time will tell how long this blaze will burn.

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