Spot Bitcoin ETF Approval Signaled a Major Turning Point in 2024
Reflecting on the Impact of Bitcoin ETF Approvals in 2024
Exactly one year ago, Gary Gensler and the Securities and Exchange Commission (SEC) made a monumental decision to approve the trading of spot bitcoin exchange traded funds (ETF). This approval marked a significant turning point for Bitcoin as these ETFs became the best-performing in history. Among them, BlackRock’s ETF $IBIT stood out, drawing in a staggering $52 billion in inflows.
It may not be easy for some to acknowledge, but the approval of these ETFs was undeniably the highlight of Bitcoin’s journey in 2024. Looking back at the events of the year, it becomes clear that everything that followed was greatly influenced by these approvals.
Throughout 2024, several key events shaped the landscape:
- Spot Bitcoin ETF approval by the SEC
- Donald Trump embracing Bitcoin
- Corporate adoption of Bitcoin by companies like MicroStrategy
- Bitcoin reaching the $100,000 price milestone
- Gary Gensler stepping down from the SEC
- The Bitcoin halving event
When BlackRock filed for their ETF during the bear market in 2023, it signaled the beginning of a new bullish trend for Bitcoin. The approval sparked a wave of interest from other asset managers, driving the price of Bitcoin upwards. The price surged from $24,900 when the ETF was filed to $46,000 upon approval, and today it hovers just below $100,000.
Price remains a primary driver of interest and adoption in Bitcoin as it attracts new investors and generates widespread attention. The approval of Bitcoin ETFs, which led to a historic price surge, laid the groundwork for Donald Trump’s endorsement of the cryptocurrency. With backing from major asset managers, Bitcoin transitioned from niche internet money to a mainstream asset, setting the stage for wider adoption.
The rising price, coupled with a pro-Bitcoin administration, prompted corporations like MicroStrategy to significantly increase their Bitcoin holdings. Michael Saylor’s relentless accumulation of Bitcoin spurred a domino effect among other companies, fueling further demand for the asset.
The Bitcoin halving event, wherein the production of new Bitcoin was halved, culminated in an all-time high surpassing $108,000. The soaring demand for Bitcoin far exceeded the mining output, driving prices higher. For instance, BlackRock’s ETF recently purchased over 6,000 Bitcoin, while miners only added 450 new coins to circulation.
NEW:
BlackRock’s spot #Bitcoin ETF bought 6,078 bitcoin today, while miners only mined 450 new bitcoin.
Absolute. Scarcity. pic.twitter.com/KkHGpP2WAL
— Nikolaus Hoffman (@NikolausHoff) January 8, 2025
The success of Bitcoin ETFs and the shift in political leadership have reshaped the regulatory landscape, paving the way for Bitcoin’s growth in the United States. With key anti-Bitcoin figures exiting regulatory bodies, the industry is primed for substantial progress without hindrance.
The approval of ETFs in 2024 was a pivotal moment that steered Bitcoin on its current trajectory. Had these approvals not occurred, the industry’s trajectory might have been vastly different. It’s evident that the positive developments throughout the year were largely influenced by the ETF green light.
This article is a Take. Opinions expressed are solely those of the author and may not reflect those of BTC Inc or Bitcoin Magazine.
The post Spot Bitcoin ETF Approval Signaled a Major Turning Point in 2024 appeared first on Crypto Breaking News.