A year ago, U.S. spot bitcoin ETFs were approved, culminating in significant market impact. As of January 10, 2024, over 1.13 million bitcoins are held across these funds, with total assets exceeding $100 billion and $38 billion in net inflows in the first year. Analyst James Seyffart noted these inflows were beyond expectations, especially given initial conservative projections. Looking forward, Bitwise predicts continued growth for bitcoin ETFs in 2025. Seyffart anticipates a possible inflow matching last year’s performance, contingent on economic stability. The dominant BlackRock iShares Bitcoin Trust now exceeds its gold counterpart in assets under management, and could potentially eclipse gold ETFs entirely in the coming years. Factors influencing this trajectory include bitcoin’s role as a hedge against currency depreciation and potential increased adoption by traditional finance institutions. The overall market outlook hinges on bitcoin performance and the unfolding of macroeconomic conditions and policy environments.

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