Impact of Bitcoin ETFs on Stock Markets

Haliys Smit

In October 2024, Bitcoin ETFs launched globally, creating waves in the stock markets. Major exchanges saw a spike in crypto-linked stocks

The launch boosted market liquidity, with over US$5 billion traded in ETF-linked assets on the first day, attracting new investors to crypto-related stocks

Stock markets in the US and Europe felt the biggest impact, with tech and financial sectors seeing a 12% rise, driven by Bitcoin’s growing legitimacy

Major financial firms like BlackRock and Fidelity also launched their Bitcoin ETFs, making crypto investments more accessible to traditional market players

Analysts predict long-term effects, as Bitcoin ETFs could shift market dynamics, blending the lines between traditional and digital assets

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