Exactly one year ago, Gary Gensler and the Securities and Exchange Commission (SEC) finally yielded and sanctioned the trading of spot bitcoin exchange traded funds (ETF) to commence the following day. These ETFs would subsequently become the top-performing ETFs in history, with BlackRock’s ETF $IBIT spearheading the endeavor, amassing over $52 billion inflows alone.
I sense that many individuals are hesitant to acknowledge this, or simply prefer not to, but the ETFs represented the most crucial moment for Bitcoin throughout 2024. Reflecting on the year, it feels as if everything favorable for Bitcoin stemmed from these approvals. Allow me to elaborate.
The six key events that unfolded in 2024 were as follows:
- SEC approval of Spot Bitcoin ETF
- Donald Trump’s commitment to embracing Bitcoin
- MicroStrategy and additional corporate adoption of Bitcoin
- $100,000 price milestone
- Gary Gensler’s resignation from the SEC
- The halving
When BlackRock submitted its ETF application towards the conclusion of the bear market in 2023, that signified the onset of a new bull market for me. An immediate surge of other major asset managers began to apply for their own ETFs, leading to a continuous rise in Bitcoin’s value — the price of Bitcoin was $24,900 when BlackRock submitted its ETF, then it reached $46,000 upon approval, and now we find ourselves just under $100,000.
The primary factor driving interest and further adoption of Bitcoin is its price, not its utility. Substantial price surges attract the most attention, new sources of capital, and generate more interest in the asset overall. When Bitcoin experiences a price drop, the casual investors disperse and only the HODLers persist.
Bitcoin ETFs propelling the price dramatically established the foundation for Donald Trump to endorse it. Bitcoin was no longer just whimsical internet currency for a niche group online; it was now supported by the world’s largest asset managers, such as BlackRock and Fidelity. The enormous inflows into these products resembled a tidal wave, highlighting the immense demand for Bitcoin and the new financial trajectory our nation was heading towards. It demonstrated that this is an industry poised for exponential growth, and I believe Trump, like many other politicians, including senators and congressmen, recognized they are better off collaborating with us rather than opposing us.
With the price being driven upwards by the support of the largest asset managers, and the emergence of a new pro-Bitcoin administration within the White House, this cleared the way for MicroStrategy and other corporations to invest more deeply into the asset. And that’s precisely what transpired.
Michael Saylor escalated MicroStrategy’s bitcoin acquisitions like never before, showing no signs of slowing down in 2025. Their stock outshining Bitcoin has captured the attention of numerous other publicly traded companies that emulated the ‘Bitcoin For Corporations’ strategy, all creating additional buying pressure for Bitcoin, further elevating its price. MicroStrategy is in the process of raising over $42 billion to acquire more Bitcoin before anyone else who hasn’t invested — this substantial surge in demand combined with regulatory certainty is driving Bitcoin accumulators into a FOMO frenzy.
All these factors combined, including the halving event where the production of newly created Bitcoin was reduced to just 3.125 BTC per block, propelled us to an unprecedented all-time high above $108,000. The intense demand for purchasing on many days completely offsets the number of new coins mined, further elevating the price. Recently, BlackRock’s ETF alone acquired over 6,078 bitcoin while miners only produced 450 new bitcoin. There simply isn’t enough Bitcoin to satisfy everyone, and they won’t be producing more than 21 million coins.
NEW: 🇺🇸 BlackRock's spot #Bitcoin ETF acquired 6,078 bitcoin today, while miners only produced 450 new bitcoin.
Absolute. Scarcity. pic.twitter.com/KkHGpP2WAL
— Nikolaus Hoffman (@NikolausHoff) January 8, 2025
The triumph of these ETFs alongside the shift in presidential administration signified unfavorable news for the SEC and other anti-Bitcoin regulators and politicians. Gary Gensler, who played a role in delaying the approval of the spot ETFs for years, is officially departing from the SEC. Both democrat commissioners on the SEC who opposed the approval are also resigning. Furthermore, it seems that Bitcoin is now positioned to flourish in the United States over the next four years without facing attacks from regulators and politicians who have stymied this industry for so long.
The ETFs represented a monumental occurrence for this sector, and outcomes would likely have unfolded quite differently had they not received approval. The price of Bitcoin would probably be significantly lower than it is today, and we might have even seen a different victor in the US presidential election if they had not been authorized. Numerous factors went in Bitcoin’s favor this past year, all stemming from the ETF approvals.
This article is a Take. Opinions expressed are solely those of the author and do not necessarily mirror those of BTC Inc or Bitcoin Magazine.