Bitcoin worked its way into the mainstream in the late 2010s and early 2020s. As it stands today in January 2024, the global cryptocurrency market capitalization is $1.55 trillion. That’s trillion, with a “T”. The fledgling market has not been without its naysayers. While it has been a highly volatile space, it has proven to be a reliable driver of growth for those willing to bet on its long-term growth potential.
The first major Bitcoin and crypto rally ran through 2017 and came to a screeching halt in the beginning of 2018. Indeed, the threat of a regulatory crackdown was one of the major headwinds that started to give investors pause over the course of the bull market that made Bitcoin a household name. Since then, Bitcoin and the broader crypto space has been fighting tooth and nail for legitimacy.
On January 10, 2024, the United States Securities and Exchange Commission approved the listing and trading of several spot bitcoin exchange-traded product (ETP) shares. On January 11, 2024, US Bitcoin ETFs saw a whopping $4.6 billion in volume in the first day of trading. After a week of trading, we started to see a clearer picture of how assets were shaking out.
Unsurprisingly, BlackRock’s Bitcoin ETF attracted more than $1 billion of inflows. The 10 spot Bitcoin ETFs saw total trading volumes of $16.6 billion in the first six days of trading as of Friday, January 19. Bitcoin itself enjoyed a spike after the SEC decision, but has since lost some momentum.
