Fidelity and BlackRock continue to lead the way in this space. Meanwhile, the SEC continues to evaluate other crypto ETFs. Spot Bitcoin ETFs, approved in January 2024, have seen remarkable growth in just nine months, reaching a valuation of $64,038. These funds have raised funds faster than even some of the larger traditional ETFs and are expected to double in size by 2025 and quadruple by 2027.

BlackRock’s IBIT fund maintains its leadership position in the sector with a size of $21.7 billion. On the other hand, Fidelity’s Wise Origin Bitcoin ETF has strengthened its position in the market with strong net inflows in the recent period. The total size of the Fidelity ETF is approaching $10 billion, and it attracted attention especially with its performance on Friday. On the same day, Fidelity’s fund received $20 million more inflows than the ARK 21Shares Bitcoin ETF. ARK 21Shares recorded a net inflow of $145 million Australian dollars.

IBIT’s Weekly Performance is Strong

While IBIT did not see net inflows on Friday, it impressed investors with its performance throughout the week. On Monday, all funds saw inflows totaling A$349.4 million, but from Tuesday to Thursday, there were outflows totaling A$208.4 million.

Projections for next year expect spot Bitcoin ETFs to double in size, and it would not be surprising if that increase were to quadruple in three years.

SEC Reviewing Other Crypto ETF Applications

The status of ETF applications for crypto assets other than Bitcoin and Ethereum is still unclear. The SEC continues to review ETF applications submitted for digital assets such as XRP and Solana. However, Kaiko analysts say that the XRP ETF application is unlikely to be approved due to the impact of the lawsuit between Ripple and the SEC.

SEC Member Uyeda criticized the institution’s approach to the crypto industry, saying, “This attitude is damaging the industry.” VanEck executive Matthew Sigel argued that Solana should be considered a commodity like Bitcoin and Ethereum. Sigel suggested that the fate of the Solana ETF application may depend on the results of the upcoming presidential elections.

Uncertainty in the Regulatory Environment

While the ETF approval processes for cryptocurrencies other than Bitcoin and Ethereum remain uncertain, the likelihood of these two funds being approved was also seen as low in the past. However, current regulatory developments continue to shape market expectations.

With the rapid growth of spot Bitcoin ETFs, big players like Fidelity and BlackRock continue to lead the way, but it is clear that the future of the sector will depend on how the regulatory framework takes shape and the SEC’s approach.