In 2024, the cryptocurrency market is experiencing historic developments, especially in the ETF sector. Following the approval of Bitcoin and Ethereum ETFs, many institutions such as Canary Capital and VanEck began applying for ETFs for other cryptocurrencies like Solana, XRP, and Litecoin. The Hong Kong market is also not lagging behind, with financial giants like Harvest Fund, Southern Fund, and Huaxia Fund's Hong Kong subsidiaries applying to launch Bitcoin ETFs. In December, the monthly inflow for the ETH ETF surged to $2.1 billion, setting a new historical record and paving the way for future rebounds. Experts expect that $ETH
or
is expected to hit the target of $6000 in 2025.
The total assets under management of the U.S. crypto ETF market have exceeded $122.39 billion, and Hong Kong launched Bitcoin and Ethereum spot ETFs in April, raising approximately HKD 2 billion on the first day. After the launch of the Ethereum spot ETF in the U.S., the trading volume exceeded $1.019 billion on the first day. Although investor interest is relatively lower than that for Bitcoin ETFs, by December, the Ethereum ETF attracted nearly $7 billion in investment. Analyst Nate Geraci predicts that ETF issuers may soon submit proposals for spot ETF products tracking the performance of Cardano (ADA) and Avalanche (AVAX).
Cardano is seen as a promising ETF option due to its technical approach and community support. Its stability, anti-centralization features, and UTXO and PoS consensus mechanisms make it unique in addressing the blockchain trilemma. With the approval of Bitcoin ETFs in the U.S., other major cryptocurrencies like Ethereum and XRP are also expected to receive ETF approval. Cardano has participated in the Swiss-registered 21Shares Cardano ETF and is included in the OTC traded Grayscale Digital Large Cap Fund (GDLC) portfolio.
Global asset management companies such as ProShares and Hashdex in the U.S., and Harvest Fund and Huaxia Fund in Hong Kong, are actively entering the crypto ETF space, reflecting the growing market interest in digital assets and institutional optimism about innovation in the field. The Bitcoin and Ethereum ETF market in 2024 is witnessing unprecedented prosperity, with net inflows for the U.S. spot Bitcoin ETF reaching $35.66 billion and net inflows for the Ethereum ETF at $2.68 billion. BlackRock's iShares Bitcoin Trust ETF (IBIT) saw net inflows of $37.31 billion, leading the market. Despite some market fatigue at the end of the year, strong long-term bullish signals are evident, with expectations that Ethereum could rebound to $7000 in 2025, driving growth momentum in the cryptocurrency market.
