Mike Smith
Jan 14
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During the first year of Bitcoin spot ETFs, the financial landscape has undergone significant changes. December 2024 was marked by a historic event - the price of Bitcoin for the first time exceeded the $100,000 mark, reaching a peak of $106,000. This impressive growth is largely due to ETF funds, which attracted investments of $36 billion, and the total volume of assets under their management grew to an impressive amount of $110 billion.
The undisputed leader among ETF funds was BlackRock IBIT, which accumulated assets worth $50 billion. It is noteworthy that funds from Ark Invest and 21Shares (ARKB), despite lower indicators, managed to enter the top twenty most successful ETF launches in the history of the American financial market.
The emergence of ETFs has significantly changed the balance of power in the cryptocurrency market. Traditional exchange platforms have faced serious competition from financial corporations. Three leading ETF funds - IBIT, FBTC and GBTC - already surpass many cryptocurrency exchanges in terms of trading volumes, although Binance still maintains its leading position with a three-fold advantage.
The events in South Korea in December demonstrated the impact of political instability on the cryptocurrency market. After the announcement of martial law by President Yoon Seok-yul, the price of Bitcoin on the Upbit platform fell to $ 63,000, but quickly recovered. The Kimchi Premium indicator, reflecting the difference between prices on Korean and American exchanges, exceeded 5%. Despite the initial transition of traders to fiat currencies, by the beginning of January the situation began to stabilize, as evidenced by the positive dynamics of the CVD USDT indicator.
The US Department of Justice announced the sale of 69,370 BTC worth $6.5 billion, which caused serious concerns among investors. Previously, similar actions by Germany had a negative impact on the market. Currently, the largest holders of bitcoin remain the United States and China, and Bhutan holds cryptocurrency in the amount equivalent to 30% of the country's GDP.
Despite the current difficulties and pressure from large holders, the increased interest of institutional investors and the successful development of ETF funds create favorable conditions for the further development of the cryptocurrency market. Experts estimate the likelihood of creating state BTC reserves under the current administration at 25%.
