The year in review for cryptocurrency businesses focused on bitcoin.

Table of Contents

A New Era for Cryptocurrency

Cryptocurrency has had a historic year, solidifying its status as a mainstream financial instrument. The approval of 11 exchange-traded funds (ETFs) in January marked one of the most successful debuts in history, thanks to institutional demand.

ETFs and Institutional Demand

The ETFs’ launch was met with widespread interest from professional investors, leading to a surge in Bitcoin’s price. By the end of the year, institutional buyers had invested over $113.5 billion in Bitcoin-focused funds.

Key Statistics:

11 exchange-traded funds (ETFs) approved in January
Institutional demand drives Bitcoin price to record highs
Over $113.5 billion invested in Bitcoin-focused funds by end of the year

The Impact on the Broader Market

The influx of institutional investment had a ripple effect across the broader market, with over-the-counter (OTC) transactions increasing significantly.

Institutional Investors Lead the Charge:

Kraken exchange sees 220% year-over-year increase in OTC markets
Tim Ogilvie, head of institutional at Kraken, notes: "Long story short, OTC is going gangbusters right now."

Beyond ETFs: Institutional Adoption Expands

By the end of 2024, institutional adoption had expanded beyond ETFs, with publicly traded companies embracing Bitcoin on their balance sheets.

A New Era for Corporate Finance:

MicroStrategy has been leading this approach since 2020
The company amasses over 444,000 Bitcoin in its treasury
On Dec. 23, MicroStrategy submits a proxy to the US Securities and Exchange Commission seeking shareholders’ approval to expand its Bitcoin purchases through 2025

The Evolution of Cryptocurrency

Some may argue that Bitcoin has strayed from its original ethos centered around principles of decentralization. However, the core ideals remain embedded in its network, allowing individuals anywhere to store and transfer wealth independently.

A Decentralized Revolution:

Bitcoin’s network operates independently
Individuals can store and transfer wealth without intermediaries

This Week’s Crypto Biz: Key Developments

Crypto.com launches US institutional custody service, Russia bans crypto mining for 6 years in 10 regions, and the IRS reaffirms its stance on taxing cryptocurrencystaking rewards.

Crypto Biz Snapshot:

Crypto.com launches US institutional custody service
Russia bans crypto mining for 6 years in 10 regions
IRS reaffirms stance on taxing cryptocurrencystaking rewards

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