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2024 was pivotal for bitcoin (BTC-USD) and the broader cryptocurrency market, fuelled by a surge in institutional adoption through the introduction of bitcoin and ether (ETH-USD) exchange-traded funds (ETFs).
January 2024 saw the debut of the first spot bitcoin ETFs, connecting traditional finance with the digital asset market, attracting substantial interest from both retail and institutional investors. With over $100bn (£79.75bn) in assets under management within the first year, these ETFs demonstrated robust demand for regulated bitcoin exposure.
By mid-December 2024, bitcoin surpassed $100,000 for the first time. Additionally, the cryptocurrency market cap reached an all-time high of $3.8tn in the same month, reflecting the sector’s expanding influence and adoption.
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With a market capitalisation of $1.95tn (£1.56tn), bitcoin now ranks as the seventh-largest asset by market cap, trailing only gold (GC=F) at $17.6tn and global tech companies like Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN).
As the cryptocurrency sector shifts its focus to 2025, cryptocurrency derivatives trader Gordon Grant believes bitcoin’s role in institutional finance will continue to evolve. Grant sees the maturation of capital markets around bitcoin as poised to unlock new investment opportunities and use cases.
"From prime services optimisation to trade finance, bitcoin is becoming an increasingly versatile financial instrument," he told Yahoo Finance UK. Grant pointed to the ability of institutional traders to hold bitcoin in custody accounts, trade derivatives on ETFs, and integrate bitcoin into global trade frameworks, heralding a new phase of adoption.
“The holy grail for institutional players — seamlessly integrating bitcoin with equities, derivatives, and cash products — is now within reach,” Grant said. This harmonisation could catalyse capital market decisions in the coming year.
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As bitcoin begins 2025 with momentum, the groundwork laid in 2024 underscores its transition from a speculative asset to a prospective cornerstone of institutional finance, Grant added. The launch of spot ETFs, the development of new financial instruments, and its integration into global trade frameworks have redefined bitcoin’s trajectory.
“We’re no longer just witnessing the evolution of an asset; we’re seeing the emergence of an entirely new financial paradigm," he said.
Trump's Strategic Bitcoin Reserve proposal
Amplifying this momentum, victorious US presidential candidate Donald Trump made bitcoin support a cornerstone of his election campaign, underscoring the growing influence of cryptocurrency on the world stage.