Wall Street is eating into market share: Bitcoin Spot ETF volume has reached 25% of the global total.

Bitcoin Spot ETF is rapidly disrupting the trading landscape of the crypto market. In just half a year, these products have entered the mainstream, now accounting for 25% of global Bitcoin spot trading volume. A recent report by Animoca Brands Research further indicates that this wave of ETFs not only makes Bitcoin a new favorite in institutional asset allocation but may also become one of the pathways for the mainstreaming of encryption.

Traditional finance invasion? ETF consumes a quarter of Bitcoin spot trading volume.

The Block data indicates that as of yesterday, global Bitcoin spot ETFs have accounted for 25% of the total Bitcoin spot trading volume, compared to 10% in October last year, showing a remarkable growth. The reason is largely due to the product's appeal to institutional investors, which also allows retail investors to invest in Bitcoin through familiar brokerage accounts, eliminating the learning curve of private key management and encryption wallets.

As one of the most successful financial product launches over the years, multiple encryption ETFs have attracted billions of dollars in funding in just one year. Their advantages, such as simpler tax reporting compared to directly purchasing cryptocurrencies, intuitive integration into traditional investment portfolios, and the exemption from counterparty risk compared to CEX, have made them the preferred Bitcoin investment tools for investors in recent years.

The crypto ETF market is still just the tip of the iceberg, with the potential to grow sixfold in five years.

According to the Animoca Research report, the current global crypto ETF managed assets (AUM) reached $168.3 billion, but this only accounts for 1.1% of the global ETF market of $14.8 trillion and 0.1% of the total global assets under management of $128 trillion. In other words, the "ETF-ization" of cryptocurrency has just begun:

We predict that the AUM of encryption ETFs is expected to exceed 1 trillion USD within 5 years, which is equivalent to a growth of more than six times, and will attract more institutional funds, allowing Bitcoin and other encryption assets to truly become part of the "global asset portfolio."

( Spreading DeFi towards traditional finance, is the stablecoin issuer Circle's listing a kind of encryption scumbag? )

The United States dominates the ETF landscape, Europe is diverse, and Asia is in the brewing stage.

Currently, the United States leads the global ETF market with a market share of 85.7% and a volume of 144.3 billion USD, mainly driven by the approval of the Bitcoin spot ETF early last year. At the same time, although Europe's asset scale is only 15.3 billion USD, it covers a more diverse range of altcoin ETFs such as ETH or SOL, showcasing its diversification.

Other regions such as Canada and Hong Kong are gradually becoming regional encryption financial centers, especially as regulatory policies are relatively clear, attracting issuers and capital inflows.

( Ant Group plans to apply for stablecoin licenses in Hong Kong and Singapore, aiming at the Asian financial hub ).

Market data reveals: crypto ETF investors are more resilient to downturns.

According to the data, the AUM of Bitcoin spot ETFs in the United States now accounts for about 6% of the total Bitcoin market value, and the trading volume has even approached or surpassed that of U.S. gold ETFs. Even in the market downturn phase at the beginning of 2025, the market share of crypto ETFs still increased against the trend, indicating that their investors have a stronger long-term allocation mindset.

The next battlefield: Altcoin ETF and regulatory tug-of-war

The next wave of attention for crypto ETFs is shifting towards altcoins, with several altcoin ETF applications in the United States, led by SOL and XRP, starting to surface, raising expectations for a potential "altcoin ETF Season." However, the biggest variable still comes from regulation.

(Is the market outlook promising? Bloomberg analysts: Prepare for the altcoin ETF Summer, with Solana leading the way! )

The SEC's recent attitude towards ETF staking will become a key regulatory focus, and whether more altcoin ETFs are approved in the future will depend on the maturity of the assets, liquidity, the experience of the issuers, and whether they carry the "Made in USA" label.

ETF will be the financial engine driving the mainstreaming of encryption.

The encryption ETF has connected traditional finance with the encryption world, providing a more stable and secure investment avenue for crypto assets. From the rise in popularity of Bitcoin spot ETFs to the eagerness of altcoin products, some view it as product innovation and a reshaping of financial order, while others worry that the encroachment of traditional finance (TradFi) will gradually diminish the crypto space.

( Traditional finance integrating blockchain leaves encryption in the shadows: What has Cypherpunk left behind after moving to the margins? )

However, as traditional investors gradually enter the market, perhaps crypto ETFs will ultimately still be one of the few compliant paths for cryptocurrencies to move towards "financial mainstreaming", but it will not be the only solution.

This article discusses how Wall Street is eating into market share: Bitcoin spot ETF volume has reached 25% globally, first appearing in Chain News ABMedia.