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Crypto ETFs Surge: Wall Street Embraces Digital Assets
30 Dec
Summary
- Spot Bitcoin ETFs saw $57.7 billion in net inflows by December 2024.
- Ethereum ETFs garnered $12.6 billion in net inflows since July 2024.
- New SEC standards define criteria for digital assets in commodity trusts.
The landscape of cryptocurrency investment on Wall Street has significantly evolved throughout 2024, marked by the opening of new avenues through exchange-traded funds (ETFs). Asset managers have successfully launched products tracking the spot prices of major cryptocurrencies, with significant investor interest noted. As of December 15, 2024, spot Bitcoin ETFs had accumulated a remarkable $57.7 billion in net inflows since their launch in January 2024.
Similarly, spot Ethereum ETFs have also seen substantial traction, generating $12.6 billion in net inflows by December 15, 2024. Despite some market volatility leading to investor withdrawals on specific days, the overall trend indicates growing institutional adoption and investor confidence in these digital asset products. The focus is now shifting towards the potential for ETFs tracking multiple cryptocurrencies.
In September 2024, the Securities and Exchange Commission (SEC) established generic listing standards for commodity-based trusts. This regulatory move addressed long-standing questions about when digital assets should be classified as commodities, providing clear criteria for exchanges and making various cryptocurrencies eligible for these trusts.
