By Brett Munster
December is here, and with it comes the tradition of The Node Ahead year-end recap. While we usually highlight a single defining story of the year, 2024 brought not one but two standout stories that demand attention. Lucky you—consider this two-for-one offering my holiday gift! Before diving into those two monumental developments, let’s take a moment to reflect on the whirlwind that was 2024 in the world of crypto, as captured in the pages of this newsletter.
The year kicked off with a bang when bitcoin hit a new all-time high in March—a milestone that marked the first time this occurred prior to the Halving. Back then, we predicted that this would usher in a period of heightened volatility (nailed it) and noted how past cycles showed double-digit corrections were precursors to triple-digit gains. True to form, we analyzed the causes behind July’s double-digit dip and made the case as to why $55k was a strategic buying opportunity. As bitcoin rebounded, we examined the data showing how savvy investors capitalized on the dip, riding the wave to over $100,000. (Proof that it pays to read this newsletter!)
Regulation was another defining theme of 2024, with milestones both promising and problematic. We highlighted data showing how regulatory ambiguity continues to drive entrepreneurs offshore to the detriment of the U.S. economy. We covered headline-making events like the SEC’s unprecedented sanctioning in the Debt Box case, Wells Notices sent to Uniswap and Robinhood, and the SEC’s own admission that the term “crypto asset security” was a fabricated concept. Add to that the twists and turns of the SAB 121 saga, progress on the market structure bill, and the nuanced implications of BNY’s exemption. We also delved into the Supreme Court’s overturning of the Chevron Doctrine and its potential ramifications for crypto, and we explored the irony of the U.S. government relying on Coinbase as a trusted partner while simultaneously suing the company for offering those very same services. (Sometimes the stories just write themselves.)
On the tech side, we covered Ethereum’s Dencun upgrade in March and Bitcoin’s Halving in April. We tracked innovations like Proof of Reserves, which are reshaping traditional financial systems, the growing trend of corporations adding bitcoin to their treasuries, and the unique data advantages crypto has over legacy financial markets. Stablecoins were another hot topic as were the revelations suggesting that Silvergate Bank was forcibly closed despite being completely solvent. We argued why, in the near future, bitcoin ownership may become so ubiquitous that people might hold it without even realizing it. (Yes, that includes your grandma Mildred, who still calls it “The Google” and thinks bitcoin is a fancy arcade token).
In our ongoing analysis of market trends, we explained why bitcoin’s price is poised to rise regardless of Federal Reserve interest rate decisions. We also noted that high-profile investors like Paul Tudor Jones and Stanley Druckenmiller remain short on bonds and long on bitcoin. (I mean, it’s always comforting when billionaires confirm your investment thesis; it’s like finding out Einstein also thought pizza tastes better cold.)
Throughout 2024, we published a wealth of data-driven research, from the bull case for BTC and ETH at the start of the year to exploring the bitcoin multiplier effect and why less than 0.1% of the global population will ever own a full bitcoin. We examined how crypto adoption is outpacing the internet’s growth in the 1990s and we dove deep into bitcoin’s correlation with global liquidity. Plus, we explained why the largest generational wealth transfer in history is likely to bring trillions of dollars into the space over the next two decades (As a millennial to all the baby boomers reading this, thank you for your inheritance and don’t worry, we promise to HODL responsibly… right after buying a Lambo.)
Yes, we covered a lot this year. But as fascinating as all these topics were, none rivaled the significance of two groundbreaking developments: crypto’s emergence as a political powerhouse and the launch of crypto ETFs.
Crypto as a political force
In our last newsletter, we explored how the recent presidential election could profoundly benefit the crypto industry. From a shift to a crypto-friendly administration to the appointment of supportive regulators at agencies like the SEC, OCC, FDIC, and Treasury, the stage is set for transformative changes. These could include repealing restrictive policies like SAB 121, ending Chokepoint 2.0, achieving regulatory clarity from Congress, and even positioning bitcoin as a strategic reserve asset for the U.S. government. Yet, while these advances are likely to materialize in 2025, the real story of 2024 is how crypto emerged as a political powerhouse, reshaping the American political landscape.
Since 2021, we’ve been discussing the rise of the crypto industry as a growing political force and predicted that a pro-bitcoin president would take office by the 2028 election. In hindsight, that prediction—dismissed by many at the time—proved overly conservative, as Trump’s 2024 victory supported by an increasingly crypto-friendly Congress, signals the arrival of crypto’s political era far earlier than even we anticipated. Over the past four years, we’ve highlighted a steady stream of pro-crypto legislation, bipartisan endorsements, and growing lobbying efforts that foreshadowed what became clear this year: 2024 was crypto’s breakout moment in U.S. politics, one that put Washington on notice.
The collapse of FTX in 2022 unleashed a wave of demonization of crypto, with political opponents seizing on the crisis to label the industry as reckless and a threat to the financial system. Supported by a few high-profile politicians, agencies like the SEC launched aggressive legal campaigns and the FDIC worked to systematically debank the industry. Many entrepreneurs and companies relocated offshore under this mounting pressure. For the crypto industry, the 2024 election became an existential battle to counter this narrative and reclaim its future.
The industry responded with unprecedented mobilization. Grassroots efforts, spearheaded by organizations like Stand With Crypto, rallied over 1.5 million advocates nationwide, actively engaging in conversations with lawmakers in Washington and pressing for common-sense regulation. Crypto-related PACs and allied groups raised an impressive $245 million during the election cycle, outpacing both the Oil and Pharmaceutical sectors in campaign contributions. Nearly half of all corporate campaign donations were tied to crypto interests, underscoring the sector’s rising influence.
The industry’s newfound clout was epitomized by Fairshake, the largest super PAC of the 2024 election cycle. Fairshake focused only on congressional races, not the presidency, and its bipartisan strategy resulted in victories for 53 of the 58 candidates it supported, including some of the most high-profile races in the country. Among its signature wins was Ohio’s Senate race, where Bernie Moreno, a pro-crypto underdog, defeated Sherrod Brown, a 17-year incumbent and vocal crypto critic. Before entering the Senate race in April 2023, Moreno was a relative unknown—a Cleveland-based car dealership owner whose only prior political experience was an unsuccessful bid for Ohio’s other Senate seat in 2022. Facing the formidable challenge of running against Brown, Moreno’s campaign initially appeared to be a long shot.
Fairshake’s strategic support turned Moreno’s candidacy into a formidable campaign. With substantial financial backing and targeted outreach, the PAC amplified Moreno’s pro-crypto message, galvanizing younger, tech-savvy voters and reshaping the narrative. The campaign portrayed Moreno as a bold reformer willing to embrace innovation, contrasting sharply with Brown’s resistance to crypto and emerging technologies. This effort culminated in a stunning upset, sending a strong signal to Washington: candidates who support crypto’s innovative potential can resonate with voters and win against entrenched opponents.
Beyond Ohio, Fairshake’s efforts secured critical wins across the country. Its balanced support of Republican and Democratic candidates demonstrated that crypto’s appeal transcends party lines, uniting voters across ideological divides. Fairshake’s allocated nearly equal funding to Republican and Democratic candidates in the House and made significant contributions to Senate races. For example, the PAC invested over $10 million each in Democratic candidates in Arizona and Michigan, both of whom won. This non-partisan, results-driven strategy—coupled with its willingness to challenge incumbents—delivered unprecedented success the likes of which Washington has never seen.
Crypto’s influence is now reflected in Congress. 20 pro-crypto senators and 276 House representatives with crypto-friendly positions were elected, compared to just 12 senators and 122 representatives opposed to the industry. Pro-crypto candidates won in 45 of 50 states, and for the first time, over 60% of elected officials in Congress are openly supportive of digital assets. From the industry’s perspective, this was not a red wave or a blue wave—it was a Bitcoin-orange wave.
This year also marked the emergence of the “crypto voter” as a critical political bloc. An estimated 40-50% of American adults now own crypto with a Gemini report revealing that 73% of these 100-130 million crypto owners consider a candidate’s stance on crypto when casting their vote. Polling data revealed that one in five swing-state voters regarded crypto as an important election issue. Notably, support for digital assets spans across political affiliations, emphasizing crypto’s nonpartisan nature. Among non-crypto owners, few hold strong anti-crypto sentiments, highlighting significant upside for politicians adopting pro-crypto positions and minimal risk in doing so. For politicians, the takeaway is clear: being pro-crypto offers substantial voter support, while opposing it risks alienating this rapidly growing constituency as evidenced by the struggles of anti-crypto figures like Sherrod Brown, Jon Tester, and Gary Gensler.
The crypto industry’s efforts in Washington are already yielding significant results. During the campaign season, the GOP, now in control of the White House, Senate, and House, officially integrated several crypto-friendly policies into its platform. With nearly 300 pro-crypto lawmakers set to take their seats in Congress, the crypto sector is poised to wield significant influence over the legislative agenda in the coming years.
President-elect Donald Trump has been actively engaging with crypto leaders to shape his administration’s approach to the industry. Notably, he recently met with Coinbase CEO Brian Armstrong to discuss key appointments, including positions such as Treasury Secretary, SEC Chair, and CFTC leadership. Early appointments like Howard Lutnick as Commerce Secretary and Scott Bessent as Treasury Secretary signal a strong pro-crypto stance from the incoming administration. Trump recently appointed David Sacks, a seasoned crypto investor, as the “AI and Crypto Czar,” a specialized role designed to oversee and harmonize efforts among regulators, Congress, and the administration to shape policies and strategies for the rapidly evolving AI and cryptocurrency sectors.
This would mark the first crypto-specific role at this level of government, highlighting the growing importance of the industry and its integration into federal policymaking. For the first time, crypto is being treated with the same access and regard as other major industries.
Momentum is also building for bold legislative moves, such as the proposed Bitcoin Stockpile Reserve Act, which aims to pass within the administration’s first 100 days. This federal push is inspiring states to follow suit: Florida and Pennsylvania have introduced legislation to add bitcoin to their state balance sheets and Texas lawmakers have vowed to do the same. The narrative has shifted dramatically—from fears of government bans on bitcoin to governments racing to accumulate it.
Meanwhile, a seismic change is underway at the SEC. Longtime crypto opponent Gary Gensler has announced his resignation, effective Inauguration Day. Former President Trump has revealed plans to nominate Paul Atkins—an outspoken advocate for crypto and co-chair of the Digital Chamber’s Token Alliance—as the next Chair of the U.S. Securities and Exchange Commission. Additionally, commissioner Jamie Lizárraga is also stepping down giving the Trump administration a second key appointment to reshape the SEC’s leadership. With existing commissioners Hester Peirce and Mark Uyeda already championing crypto-friendly policies, the agency is poised to have at least four of its five members, including the incoming Chair, aligned with the crypto industry’s interests. This represents a complete reversal of the SEC’s approach, setting the stage for a more collaborative and constructive regulatory environment for crypto.
Since the collapse of FTX, the crypto industry has faced an unprecedented assault from the world’s most powerful political system. They sued us. They de-banked us. They vowed to build an “anti-crypto army” against us. Today, the industry stands stronger than ever. More Americans own crypto than ever before, bitcoin has surged nearly 500% since the end of 2022, and the industry has won nearly every major court battle. With 60% of Congress and the incoming President openly supportive of digital assets, crypto’s position in the American economy has never been more secure.
History will remember 2024 as the year crypto’s political influence came of age. The message to Washington is clear: ignoring crypto is no longer an option. It is a transformative force, not just in technology and finance but in the very fabric of American politics. The era of crypto as a fringe movement is over—it is now a driving force shaping the nation’s future.
Bitcoin and Ethereum ETFs smash records
The launch of Bitcoin and Ethereum ETFs in 2024 marked a watershed moment for the crypto and traditional finance (TradFi) worlds. Within the crypto space, the much-anticipated “Cointucky Derby” dominated conversations leading up to the year. However, in the broader financial world, few were focused on the prospect of a Bitcoin ETF approval. Readers of this newsletter were well ahead of the curve, knowing as early as September 2023 that a Bitcoin ETF was slated for approval in January. However, most people who work in the traditional financial markets don’t read this newsletter (I know, I was shocked when I found out too). A Bitwise survey conducted just two weeks before the ETFs launched revealed that only 39% of financial advisors believed a spot Bitcoin ETF would be approved in 2024. When the Bitcoin ETFs were officially greenlit on January 10th and began trading the next day, it caught most of its TradFi community completely off guard.
At the start of the year, we predicted that while the Bitcoin ETF launch would undoubtedly be successful, the true story would unfold over the course of 2024. As noted in Issue 59 of this newsletter:
“Day one numbers are fun and the ETFs are off to a great start, but the real story will be how much is accumulated by the end of 2024. In past issues, we provided the case for why we would see $10–$50 billion of inflows over the course of this year.”
At the time, that projection of $10–$50 was one of the most aggressive forecasts in the market. To put it in perspective, even $10 billion in year-one inflows would have been celebrated as a phenomenal achievement by most. Yet, as it turns out, even our optimistic outlook drastically underestimated just how groundbreaking this ETF launch would prove to be. To call the Bitcoin ETF’s inaugural year “successful” is akin to calling the Grand Canyon a mere hole in the ground—it doesn’t begin to capture the scale of its impact.
From the outset, the Bitcoin ETFs shattered expectations. The Wall Street Journal described the launch of the ETFs as a “monster start” while Bloomberg wrote that the new ETFs “took Wall Street by storm.” On day one, they attracted $720 million in net new capital, a figure that grew to $1.4 billion by the end of the second day. By all metrics (volume, number of trades, flows, media coverage), the ETF was a historic event leading to Bloomberg ETF analyst Eric Balchunas declaring this was the biggest opening in ETF history.
Unlike most ETFs, which typically see inflows taper off after an initial surge, the momentum behind Bitcoin ETFs only accelerated as the year progressed. BlackRock’s Bitcoin ETF (IBIT) set an unprecedented pace, becoming the fastest ETF in history to reach $10 billion in assets under management (AUM)—a milestone it achieved in just seven weeks. For comparison, the gold ETF (GLD), which previously held the record, took nearly two years to reach the same threshold. By November, IBIT shattered yet another record, reaching $40 billion in AUM in just 211 days, eclipsing the 1,253-day mark previously set by IEMG. After only 11 months, IBIT is now ranked among the top 1% of all ETFs by assets, and it has already outgrown every single one of the 2,800 ETFs launched in the past decade.
It wasn’t just BlackRock’s Bitcoin ETF that achieved remarkable success—all nine of the newly launched Bitcoin ETFs experienced extraordinary growth. Collectively, these ETFs surpassed $25 billion in aggregate assets under management (AUM) within just 38 days of trading. To put this into perspective, the gold ETF (GLD) was previously the fastest to reach this same milestone and it took GLD an astounding 1,059 days—nearly three years—to do so. As of now, Bitcoin ETFs have accumulated over $100 billion in total AUM, surpassing 80% of the combined AUM of all gold ETFs—a market that has been established for more than two decades. Moreover, while Bitcoin ETFs’ AUM have surged far beyond those of gold ETFs in their early stages, this remarkable growth is further highlighted by Bitcoin ETFs drawing more than 14 times the investor inflows compared to gold ETFs over the same period.
The sheer scale of institutional adoption was equally remarkable. Bitcoin ETFs boasted over 1,000 institutional holders after just two reporting periods, with 20% of IBIT’s shares held by institutions and large advisors. In comparison, most new ETFs attract only a handful of institutional investors in their first year, often accounting for low single-digit percentages of total holdings.
Just when it seemed the ETF story couldn’t get any bigger, the unexpected approval of Ethereum ETFs added further fuel to the fire. The SEC, initially radio silent on the Ethereum ETF applications, reversed course three days before the deadline, leading to the launch of eight Ethereum ETFs on July 23rd. While the Ethereum ETFs did not match Bitcoin’s record-breaking debut, they still achieved historic success. On their first day, these ETFs saw trading volumes exceeding $1 billion—a milestone reached by only a select few ETFs in history. Even the least-traded Ethereum ETF outperformed 90% of all ETF launches historically. The combined inflows of $590 million on day one ranked the Ethereum ETFs as the third-largest ETF launch ever, trailing only the Bitcoin ETFs and the SPDR S&P 500 ETF.
All in all, of the 575 ETFs that launched in 2024, the top 4 ETFs, 6 of the top 10, and 14 of the top 25 ETFs are all Bitcoin or Ethereum.
What began as a niche crypto story evolved into a paradigm-shifting event for the entire financial sector. By November, inflows into Bitcoin ETFs reached their highest weekly levels of the year, signaling that institutional adoption is still in its early stages. Traditional finance is now firmly on notice: crypto is no longer a fringe asset class but a critical component of the modern portfolio.
As 2025 approaches, the momentum shows no signs of slowing. With TradFi investors still significantly under-allocated to crypto, these ETFs provide a convenient and accessible pathway into the space. The groundbreaking success of Bitcoin and Ethereum ETFs in 2024 not only set new benchmarks but also cemented crypto’s place at the heart of the global financial system. This is just the beginning of a transformative era for digital assets and traditional markets alike.
In Other News
President-elect Donald Trump has nominated the crypto-friendly Howard Lutnick to lead the U.S. Department of Commerce.
BlackRock’s Bitcoin ETF options hit a staggering $1.9B in trading volume on day one.
SEC Chair Gary Gensler will step down on Jan. 20, 2025.
$9 Trillion Charles Schwab to get into bitcoin and crypto trading and incoming CEO feels silly for not buying crypto.
Solana ETF regulatory filings flood in as Gensler sets departure date.
Michael Saylor presented to the board of Microsoft on adopting bitcoin.
SEC broker-dealer rule struck down by US courts, big win for crypto.
A major legal victory for the crypto industry as a US appeals court ruled that OFAC “overstepped” when it sanctioned Tornado Cash’s immutable smart contracts.
Paul Atkins named new SEC Chair.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital.
Disclaimer: This is not investment advice. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content is information of a general nature and does not address the circumstances of any particular individual or entity. Opinions expressed are solely my own and do not express the views or opinions of Blockforce Capital or Onramp Invest.
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