Bitcoin ETFs have seen record growth this year, with increased adoption driving prices to new highs.
The crypto market is poised for growth as regulatory clarity improves, with blockchain ecosystems like Solana and Avalanche.
The Thinking Crypto Podcast recently spotlighted key developments in the cryptocurrency sector during a discussionbetween host Tony Edward and Matt Hogan, Chief Investment Officer at Bitwise Asset Management. The discussion ranged from the ability of XRP to hold its ground to Bitcoin ETFs’ increasing market share and the possible future of the entire cryptocurrency market up to 2025.
🔸XRP’s Expanding Appeal and ETF Potential
Despite the ongoing legal battle between Ripple and the SEC, XRP is still finding its way onto the market. Due to its strong technology and the support of its community, it has become one of the most valuable assets in the crypto world. Eric Balchunas from Bloomberg has also pointed out possible benefits of XRP, and this is especially valid in the context of ETFs.
The adoption of Bitcoin ETFs has been impressive this year alone, surpassing the early years of gold ETF adoption. Balchunas pointed out that the inverse of this was that capital flows into Bitcoin ETFs had been put in play and could, therefore, open the door to an XRP ETF. If approved, such a product has the potential to boost XRP’s market standing, thereby attracting institutional investors and increasing the use of the digital asset.
Hogan also highlighted that ETF inflows are expected to grow even further in 2025, and there is already strong inflow growth even in 2024. If XRP is included in the ETF space, this will benefit investors as they will have more options in terms of diversification and further enhance the coin’s position in the market.
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The podcast also provided some insights into the rest of the crypto space. Hogan was upbeat on blockchain networks such as Solana, Avalanche, and XRP in particular. Hogan was optimistic about these protocols and shared that they are useful for investors and boost the demand for index-based crypto products.
🔸Bitcoin ETFs Achieving Unprecedented Growth
Bitcoin ETFs have become the leading indicator of institutional and retail participation in the cryptoasset market. Asreported by CryptoQuant analyst MAC_D, the holding of physical Bitcoin ETFs has expanded by 425,000 BTC this year, from 629,900 BTC on January 1 to 1,050,000 BTC.
This growth further took the ETF ownership to 5.33% of the total mined Bitcoin, which is 19.78 million BTC. The first quarter of 2024 was also a critical period for Bitcoin ETFs as net inflows reached $4 billion, and trading volumes increased by three times compared to February.
MARCH MADNESS: Bitcoin ETFs traded $111b in March, which is just about triple what they did in Feb and Jan. I added the months where only GBTC was on market for further context. I can't imagine April will be bigger but who knows.. pic.twitter.com/AJEE0mPmpW
— Eric Balchunas (@EricBalchunas) April 2, 2024
The BlackRock iShares Bitcoin Trust (IBIT) remains the largest Bitcoin ETF in the United States, with more than $40 billion in assets under management. The latest trend depicts both expansion and uneven tendencies, with $2.4bn net inflows noted in early November but $770m in outflows. In particular, the ETFs have been instrumental in pushing Bitcoin to its all-time highs and new records, with the new peaks touching $92,000 during the period.
Regulatory clarity remains a key factorshaping the market. A crypto-friendly framework under a Trump administration could lead to the resolution of pending regulatory cases and the approval of additional altcoin ETFs.
