Wall Street Captures Market Share: Bitcoin Spot ETF Trading Volume Reaches 25% Globally
Bitcoin Spot ETF Rapidly Disrupts Crypto Market Trading Landscape
In just six months, Bitcoin Spot ETFs have quickly entered the mainstream, now accounting for 25% of global Bitcoin spot trading volume. A recent report by Animoca Brands Research indicates that this ETF wave has not only made Bitcoin a favorite in institutional asset allocation but may also serve as one of the pathways to the mainstreaming of cryptocurrency.
Traditional Finance Invasion? ETF Captures a Quarter of Bitcoin Spot Trading Volume
Data from The Block indicates that as of yesterday, global Bitcoin Spot ETFs accounted for 25% of the total Bitcoin spot trading volume, a remarkable growth from 10% in October last year. The primary reason lies in the inherent appeal of these products to institutional investors, allowing retail investors to invest in Bitcoin through familiar brokerage accounts, thereby eliminating the learning curve associated with private key management and cryptocurrency wallets.
As one of the most successful financial product launches in history, multiple cryptocurrency ETFs have attracted tens of billions of dollars in just one year. Compared to direct purchases of cryptocurrencies, they offer simpler tax reporting, intuitive integration into traditional investment portfolios, and the elimination of counterparty risk compared to centralized exchanges, making them the preferred Bitcoin investment tools for many investors in recent years.
Crypto ETF Market Only the Tip of the Iceberg, Expected to Grow Sixfold in Five Years
According to the Animoca Research report, global crypto ETF assets under management (AUM) currently stand at $168.3 billion, which accounts for only 1.1% of the $14.8 trillion global ETF market and 0.1% of the $128 trillion total global assets under management. In other words, the “ETF-ization” of cryptocurrencies has only just begun:
We predict that crypto ETF AUM is expected to surpass $1 trillion within five years, representing over sixfold growth, and attract more institutional capital, allowing Bitcoin and other crypto assets to truly become a part of the “global asset portfolio.”
The U.S. Dominates the ETF Landscape, Europe Diverse, Asia in the Works
Currently, the U.S. leads the global ETF market with $144.3 billion and an 85.7% market share, primarily driven by the approval of Bitcoin Spot ETFs early last year. Meanwhile, Europe’s asset size, although only $15.3 billion, encompasses a more diverse array of altcoin ETFs (such as ETH or SOL), showcasing its diversity.
Other regions, including Canada and Hong Kong, are gradually becoming regional crypto financial hubs, particularly as regulatory policies become clearer, attracting issuers and capital inflows.
Market Data Reveals: Crypto ETF Investors More Resilient
According to data, U.S. Bitcoin Spot ETFs’ AUM now accounts for approximately 6% of the total Bitcoin market capitalization, with trading volumes even nearing or exceeding those of U.S. Gold ETFs. Even during the market downturn in early 2025, the market share of crypto ETFs continued to rise, indicating that their investors possess a stronger long-term allocation mindset.
The Next Battlefield: Altcoin ETFs and Regulatory Tug-of-War
The next focus for crypto ETFs is shifting towards altcoins, with multiple applications for altcoin ETFs in the U.S., particularly for SOL and XRP, starting to gain attention, sparking anticipation for a potential “Altcoin ETF Season.” However, the biggest variable still comes from regulation.
ETF Will Be a Financial Engine Driving Crypto Mainstreaming
Crypto ETFs bridge traditional finance and the crypto world, providing a more stable and secure investment avenue for crypto assets. From the explosive popularity of Bitcoin Spot ETFs to the budding interest in altcoin products, some view this as product innovation reshaping financial order, while others worry that the encroachment of traditional finance (TradFi) will lead to a gradual decline in the crypto space.
As traditional investors continue to enter the market, crypto ETFs may ultimately remain one of the few compliant pathways for cryptocurrencies to achieve “financial mainstreaming,” though they will not be the only solution.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices may fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully assess the risks.
