The post Have Bitcoin ETFs Lived Up to the Hype? appeared on BitcoinEthereumNews.com.

The launch of Bitcoin ETFs in January 2024 was heralded as a groundbreaking moment for the market. Many expected these products to open the floodgates for institutional capital and catapult Bitcoin prices to new heights. But now, a year later, have Bitcoin ETFs delivered on their promise? For a more in-depth look into this topic, check out a recent YouTube video here: Have Bitcoin ETFs Lived Up to Expectations? A Strong Start Since their launch, Bitcoin ETFs have accumulated over 1 million BTC, equivalent to approximately $40 billion in assets under management. Even when accounting for outflows from competing products like the Grayscale Bitcoin Trust (GBTC), which saw withdrawals of over 400,000 BTC, the net inflows remain significant at about 540,000 BTC. Figure 1: ETFs have accumulated over 1 million BTC. View Live Chart 🔍 To put this into perspective, the scale of inflows far exceeds what we witnessed during the launch of the first gold ETFs in 2004. Gold ETFs garnered $3.45 billion in their first year, a fraction of Bitcoin ETFs’ $37.5 billion in inflows over the same period. This highlights the intense institutional interest in Bitcoin as a financial asset. Figure 2: The first Gold ETF accrued less than 1/10th the value of the BTC ETFs in its first year. Bitcoin’s Year of Growth Following the launch of Bitcoin ETFs, initial price movements were underwhelming, with Bitcoin briefly declining by nearly 20% in a “buy the rumor, sell the news” scenario. However, this bearish trend quickly reversed. Over the past year, Bitcoin prices have risen by approximately 120%, reaching new heights. For comparison, the first year following the launch of gold ETFs saw a modest 9% price increase for gold. Figure 3: Over 100% returns in the year following approval. Following the Gold Fractal When accounting for Bitcoin’s…

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Filed under: News - @ January 10, 2025 2:24 pm