In 2024, Bitcoin activity has hit a level that has never been seen before, topping the high point of the 2021 bull run. Most of this rise can be traced back to the start of Bitcoin exchange-traded funds (ETFs) in the US in January 2024.
The latest report from blockchain data company Chainalysis says that the number of Bitcoin transactions reached a new high. The usage index reached 0.8 in the fourth quarter of 2024, which was higher than the 0.7 peak from the same time in 2021. The measure did, however, go down a little, to 0.68 by the second quarter of 2024.
The study says that the launch of spot Bitcoin ETFs in the US greatly increased Bitcoin activity around the world, especially in higher-income areas like Western Europe and North America. According to Matt Hougan, Chief Investment Officer at Bitwise, these ETFs have become the fastest-adopted new ETFs in history as they have been quickly accepted by wealth managers.
